Slide 1: 2nd Quarter 2024 Conference Call
JAMES D. TAICLET Chairman, President and CEO JAY MALAVE Chief Financial Officer Lockheed Martin MARIA RICCIARDONE Vice President, Treasurer Corporation & Investor Relations 2nd Quarter 2024 Conference Call July 23, 2024 Webcast login at: www.lockheedmartin.com/investor Webcast replay & podcast avail
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains statements that, to the extent they are not recitations of historical fact, constitute forward-looking statements within the meaning of the federal securities laws, and are based on Lockheed Martin’s current expectations and assumptions. The word
Slide 3: 2Q 2024: Strong First Half of the Year
2Q 2024: Strong First Half of the Year • Strong Growth, Margins and Free Cash Flow Financial • Outlook Improving Results • Backlog Remains Healthy • F-35 Delivery Restart 21st Century • Valiant Shield Demonstrations Security® • AIR6500, NGI, Skunk Works® AI Environment • FY25 Budget Progression • NA
Slide 4: 2Q 2024 Financial Highlights: Positive Momentum
2Q 2024 Financial Highlights: Positive Momentum $18.1B $2.0B Sales Segment Operating Profit* 11.3% $6.85 0.97x Segment Operating Margin* Earnings Per Share Book-to-Bill Ratio* $1.5B $0.9B $0.8B $0.8B Delivered in Free Cash Flow* Of Share Repurchases In Dividends Of Independent Research & Returns to
Slide 5: Aeronautics
Aeronautics 2nd Quarter ($M) Sales Operating Profit* $6,875 $7,277 $718 $751 10.4% 10.3% 2023 2024 2023 2024 Sales: Increased 6% Operating Profit: Increased 5% Volume on F-35 and Higher Volume and Favorable Mix, Production Ramp on F-16 Partially Offset by Lower Profit Booking Rate Adjustments F-35 *
Slide 6: Missiles & Fire Control
Missiles & Fire Control 2nd Quarter ($M) Sales Operating Profit* $3,102 $2,755 $450 $371 13.5% 14.5% 2023 2024 2023 2024 LRASM Sales: Increased 13% Operating Profit: Increased 21% Production Ramps at TSM Higher Profit Booking Rate Adjustments (primarily GMLRS & LRASM) (primarily PAC-3 & Apache) *See
Slide 7: Rotary & Mission Systems
Rotary & Mission Systems 2nd Quarter ($M) Sales Operating Profit* $4,548 $3,897 $495 $454 11.6% 10.9% 2023 2024 2023 2024 Sales: Increased 17% Operating Profit: Increased 9% Higher Volume at IWSS Higher Volume, Partially Offset by (primarily Radars, CSC & Lasers); Lower Profit Booking Rate Adjustmen
Slide 8: Space
Space 2nd Quarter ($M) Sales Operating Profit* $3,166 $3,195 $312 $346 9.9% 10.8% 2023 2024 2023 2024 GOES-U Sales: Increased 1% Operating Profit: Increased 11% Higher Volume at SMD Favorable Mix and (primarily Hypersonics & FBM); Higher Profit Booking Rate Adjustments Partially Offset by Lower Volu
Slide 9: Raising 2024 Outlook
Raising 2024 Outlook ($M), Except for EPS Prior Current Sales $68,500 - $70,000 $70,500 - $71,500 Segment Operating Profit* $7,175 - $7,375 $7,350 - $7,500 Total FAS/CAS Pension Adjustment ~$1,685 ~$1,685 Diluted EPS $25.65 - $26.35 $26.10 - $26.60 Cash from Operations $7,750 - 8,050 $7,750 - 8,050
Slide 10: Earnings per Share
Earnings per Share Range $26.10 - $26.60 Range $25.65 - $26.35 See the company’s second quarter earnings release for a description of the assumptions on which the 2024 Outlook is based. 2Q Earnings Results Conference Call 10
Slide 11: Summary
Summary • Solid First Half… Increasing 2024 Outlook for Sales, Profit and EPS • Transformational Investments into our People, Tools and Technologies • Focused on Execution to Deliver Value for Customers and Shareholders 2Q Earnings Results Conference Call 11
Slide 12: Lockheed Martin
LOCKHEED MARTINZ
Slide 13: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures Non-GAAP Financial Measures Disclosure This presentation, and today’s conference call remarks, contain non-Generally Accepted Accounting Principles (GAAP) financial measures (as defined by SEC Regulation G). While management believes that these non-GAAP financial mea
Slide 14: Appendix I: 2024 Outlook
Appendix I 2024 Outlook ($M), Except for EPS Sales ~$70,500 - 71,500 Segment Operating Profit* ~$7,350 - 7,500 Segment Margin 10.5% FAS/CAS Operating Adjustment** ~$1,625 Other, net ~($775) Consolidated Operating Profit ~$8,200 - 8,350 Net-Operating FAS Pension Income** ~$60 Interest Expense ~($1,03
Slide 15: Appendix II: Segment Outlook
Appendix II Segment ($M) Sales Operating Profit* AERO $28,100 – 28,500 $2,775 – 2,825 MFC $12,400 – 12,600 $1,450 – 1,475 RMS $17,300 – 17,500 $1,900 – 1,950 SPACE $12,700 – 12,900 $1,225 – 1,250 LM Total $70,500 – 71,500 $7,350 – 7,500 *See Chart 13 for Definitions of Non-GAAP Measures. 2Q Earnings
Slide 16: Appendix III
Appendix III 2Q Earnings Results Conference Call 16
Slide 17: Appendix IV: Acronyms
Appendix IV Acronyms GAAP – Generally Accepted Accounting Principles IWSS – Integrated Warfare Systems & Sensors EPS – Earnings per Share C6ISR – Command, Control, Communications, Computers, FAS – Financial Accounting Standards Cyber, Combat Systems, Intelligence, Surveillance & Reconnaissance CAS –