Slide 1: Lockheed Martin Corporation 1st Quarter 2023 Conference Call
JAMES D. TAICLET Chairman, President and CEO JAY MALAVE Chief Financial Officer Lockheed Martin Corporation 1st Quarter 2023 Conference Call April 18, 2023 Webcast login at: www.lockheedmartin.com/investor Webcast replay & podcast available by 2:00 p.m. ET April 18, 2023 at: www.lockheedmartin.com/i
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: 1Q 2023 Results: Solid Financial Results
1Q 2023 Results Solid Financial Results $15.1B $1.7B In Sales Segment Operating Profit* 11.1% $6.61 0.7x Segment Operating Margin* Earnings Per Share Book-to-Bill Ratio* $1.3B $0.5B $0.8B $0.6B Delivered in Free Cash Flow* Of Share Repurchases In Dividends Of Independent Research & Strategic Capital
Slide 4: 1Q 2023 Results
1Q 2023 Results Sales ($M) Segment Operating Profit* ($M) $14,964 $15,126 $1,718 1,682 11.5% 11.1% 1Q 2022 1Q 2023 1Q 2022 1Q 2023 1Q On Track with Full Year Expectation *See Charts 14 and 15 for Definitions of Non-GAAP Measures 1Q Earnings Results Conference Call 4
Slide 5: 1Q 2023 Earnings Per Share (EPS) Comparison
1Q 2023 Earnings Per Share (EPS) Comparison $6.61 $6.44 $0.18 $0.01 $6.43 $6.43 GAAP EPS 11.5% (+) Volume Adjusted EPS* (-) Margin (-) FAS/CAS (-) Interest Expense (+) Reduced Share Count 1Q 2022 1Q 2023 Favorable Volume and Share Count offset Margin, Pension and Interest Headwinds *See Charts 14 an
Slide 6: 1Q 2023 Cash Returned to Shareholders
1Q 2023 Cash Returned to Shareholders ($M) $1,270 $1,284 $2,741 $784 Dividends 101% $500 Share Repurchases Free Cash Flow* Cash Returned 101% of Free Cash Flow Returned in 1Q 2023 *See Charts 14 and 15 for Definitions of Non-GAAP Measures 1Q Earnings Results Conference Call 6
Slide 7: Aeronautics
Aeronautics Sales ($M) Segment Operating Profit* ($M) $6,401 $679 $675 $6,269 10.6% 10.8% F-16 Bahrain Delivery 1Q 2022 1Q 2023 1Q 2022 1Q 2023 *See Charts 14 and 15 for Definitions of Non-GAAP Measures 1Q 2023 Drivers Sales: Decreased 2% YoY Operating Profit: Comparable YoY Lower F-35 Production Vo
Slide 8: Missiles and Fire Control
Missiles and Fire Control Sales ($M) Segment Operating Profit* ($M) $385 $377 15.7% 15.8% $2,452 $2,388 1Q 2022 1Q 2023 1Q 2022 1Q 2023 *See Charts 14 and 15 for Definitions of Non-GAAP Measures PAC-3 MSE to Poland 1Q 2023 Drivers Sales: Decreased 3% YoY Operating Profit: Decreased 2% YoY Lower Sens
Slide 9: Rotary and Mission Systems
Rotary and Mission Systems Sales ($M) Segment Operating Profit* ($M) $406 $3,552 $3,510 $350 11.4% 10.0% Australia Orders 40 UH-60M Black Hawks 1Q 2022 1Q 2023 1Q 2022 1Q 2023 *See Charts 14 and 15 for Definitions of Non-GAAP Measures 1Q 2023 Drivers Sales: Decreased 1% YoY Operating Profit: Decreas
Slide 10: Space
Space Sales ($M) Segment Operating Profit* ($M) $2,959 $2,559 $280 $248 9.5% 9.7% 1Q 2022 1Q 2023 1Q 2022 1Q 2023 *See Charts 14 and 15 for Definitions of Non-GAAP Measures 1Q 2023 Drivers Sales: Increased 16% YoY Operating Profit: Increased 13% YoY Higher Volume on NGI, Higher Favorable Profit Adju
Slide 11: 2023 Outlook
2023 Outlook ($M), Except for EPS April Outlook Sales $65,000 - 66,000 Segment Operating Profit* $7,255 – 7,355 Total FAS / CAS Pension Adjustment ~$2,100 Diluted EPS ~$26.60 – 26.90 Cash From Operations ≥ $8,150 Capital Expenditures ~($1,950) Free Cash Flow* ≥ $6,200 Share Repurchases ~$4,000 Reaff
Slide 12: Summary
Summary • Solid Start to the Year • 2023 Financial Expectations Reaffirmed • Return to Growth Expected in 2024 and beyond • Commitment to Free Cash Flow Per Share Growth • Initial 2024 Defense Budget Request Signals Strong Support • 21st Century Security Solutions Complement Defense Outlook 1Q Earni
Slide 13: Lockheed Martin
LOCKHEED MARTINZ
Slide 14: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures Non-GAAP Financial Measures Disclosure This presentation, and today’s conference call remarks, contain non-Generally Accepted Accounting Principles (GAAP) financial measures (as defined by SEC Regulation G). While management believes that these non-GAAP financial mea
Slide 15: Definitions of Non-GAAP Measures
. Definitions of Non-GAAP Measures Adjusted Earnings Per Share (non-GAAP) Diluted earnings per share (EPS) was impacted by certain non-operational charges for all periods. Management believes the presentation of this measure adjusted for the impacts of these non-operational items is useful to invest
Slide 16: Appendix I: 2023 Outlook
Appendix I 2023 Outlook ($M) Sales ~$65,000 – 66,000 Segment Operating Profit* ~$7,255 – 7,355 Segment Margin* ~11.2% FAS/CAS Operating Adjustment** ~$1,660 Other, net ~($570) Consolidated Operating Profit ~$8,345 – 8,445 Non-Operating FAS Pension Income** ~440 Interest Expense ~($840) Effective Tax
Slide 17: Appendix II: 2023 Segment Outlook
Appendix II 2023 Outlook ($M) Segment Sales Operating Profit * Aeronautics $26,500 – 26,800 $2,775 – 2,805 MFC 11,150 – 11,350 1,510 – 1,530 RMS 15,800 – 16,100 1,880 – 1,910 SPACE 11,550 – 11,750 1,090 – 1,110 LM Total $65,000 – 66,000 $7,255 – 7,355 *See Charts 14 and 15 for Definitions of Non-GAA
Slide 18: Appendix III: Outlook Total FAS income (expense) and CAS costs
Appendix III 2023 Outlook Total FAS income (expense) and CAS costs FAS pension income ~ $ 375 Less: CAS pension cost ~ 1,725 Total FAS/CAS pension adjustment ~ $ 2,100 Service and non-service cost reconciliation FAS pension service cost ~ $ (65) Less: CAS pension cost ~ 1,725 FAS/CAS operating adjus