Slide 1: 4th Quarter 2024 Conference Call
4th Quarter 2024 Conference Call January 28, 2025 Webcast login at: www.lockheedmartin.com/investor Webcast replay & podcast available by 2:00 p.m. ET January 28, 2025 at: www.lockheedmartin.com/investor James D. Taiclet Jay Malave Maria Ricciardone Audio replay available from 2:00 p.m. ET Chairman,
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: Highlights
Highlights Solid 2024 with Sales Up 5% and Record Backlog Strong 2025 Outlook: Mid-Single Digit Growth, 11% Margins and Strong Free Cash Flow Growth F-35 Building Momentum Accelerating Technology Integration and Innovation Positioned to Deliver Long Term Value to All Stakeholders 3
Slide 4: 2024 Adjusted Results
2024 Adjusted Results Full Year Values Values For Year-Over-Year For Guidance Comparison Comparison Reported Adjusted Unplanned Adjusted October ($M), Except for EPS Impacts Results Results Impacts Results Guidance Sales $71,043 $165 $71,208 $165 $71,208 ~$71,250 Segment Operating Profit* $6,083 $1,
Slide 5: 4Q 2024 Financial Highlights
4Q 2024 Financial Highlights $18.6B $0.4B 2.3% Sales Segment Operating Profit* Segment Operating Margin* $18.8B $2.1B 11.1% Adjusted** Adjusted** Adjusted** $2.22 1.6x $0.4B Earnings Per Share Book-to-Bill Ratio* Delivered in Free Cash Flow* $7.45 $1.3B Adjusted** Adjusted** $1.1B $1.0B $0.8B of Ind
Slide 6: FY 2024 Financial Highlights
FY 2024 Financial Highlights $71.0B $6.1B 8.6% Sales Segment Operating Profit* Segment Operating Margin* $71.2B $7.9B 11.1% Adjusted** Adjusted** Adjusted** $22.31 1.2x $5.3B Earnings Per Share Book-to-Bill Ratio* Delivered in Free Cash Flow* $27.99 $6.1B Adjusted** Adjusted** $3.3B $3.7B $3.1B of I
Slide 7: Aeronautics
Adjusted** F-35 Lot 18 Aeronautics GAAP Undefinitized Contract Action Sales Operating Profit* 4th Quarter ($M) $8,174 Sales: Increased 5% $761 $774 Higher volume on F-35 production and sustainment, $7,613 $8,009 partially offset by performance on classified programs 10.0% 9.5% $434 Operating Profit:
Slide 8: Missiles & Fire Control
Adjusted** PAC-3 Production Missiles & Fire Control GAAP Capacity Award Sales Operating Profit* 4th Quarter ($M) $435 $501 $3,412 Sales: Increased 8% $3,171 13.7% *** 14.8% Higher volume due to production ramps on $395 JASSM/LRASM, GMLRS and PAC-3 Operating Profit: Decreased (304%) ($804) Lower prof
Slide 9: Rotary & Mission Systems
Adjusted** Guam FEM-02 Rotary & Mission Systems GAAP Successful Test Sales Operating Profit* 4th Quarter ($M) $4,711 $4,261 $3,415 $579 Sales: Decreased (10%) $3,171 $513 Lower volume on Seahawk, CRH, AEGIS and various 12.3% C6ISR programs 12.0% Operating Profit: Decreased (11%) Lower profit booking
Slide 10: Space
Adjusted** GPS III SV07 Space GAAP Launch Sales Operating Profit* 4th Quarter ($M) $3,379 $307 Sales: Decreased (13%) $2,940 $283 Lower volume on NextGen OPIR, Orion and 9.1% Classified programs 9.6% Operating Profit: Decreased (8%) Lower volume and profit booking rate adjustments, partially offset
Slide 11: 2025 Outlook
2025 Outlook 2024 2024 2025 ($M), Except for EPS As Reported Adjusted** Guidance Range Sales $71,043 $71,208 $73,750 - $74,750 YoY Growth +5% +5% +4% - +5% Segment Operating Profit* $6,083 $7,893 $8,100 - $8,200 Total FAS/CAS Pension Adjustment $1,686 $1,686 ~$1,125 Diluted EPS $22.31 $27.99 $27.00
Slide 12: 2025 Segment Operating Profit Walk
2025 Segment Operating Profit Walk $350 $8,150 $1,810 $7,893 ($93) $6,083 11.1% 11.0% 8.6% 2024 Prior Year 2024 Volume Other, 2025 Reported Net Charges Adjusted** Net Guidance Mid-Point *See Charts 16-17 for Definitions of Non-GAAP Measures; Chart 22 for Acronyms 12 **See Chart 4 for reconciliation
Slide 13: 2025 Earnings Per Share Walk
2025 Earnings Per Share Walk $1.17 $5.68 $27.99 $27.15 $(1.85) $(0.16) $22.31 - Higher Interest Expense - Higher Tax Rate + Lower Share Count 2024 Prior Year 2024 Volume FAS/CAS Other, 2025 Reported Net Charges Adjusted** Pension Net Guidance Adjustment Mid-Point *See Charts 16-17 for Definitions of
Slide 14: Summary
Summary Robust Top-Line Growth and Record Backlog in 2024 Increasing Investment to Expand Capabilities; De-Risked Programs Confident in 2025 Financial Outlook Integrating the Best of Commercial and Military Solutions Focused on Execution to Create Value for Customers & Shareholders 14
Slide 15: Lockheed Martin
LOCKHEED MARTINZ
Slide 16: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures Non-GAAP Financial Measures Disclosure This presentation, and today’s conference call remarks, contain non-Generally Accepted Accounting Principles (GAAP) financial measures (as defined by SEC Regulation G). While management believes that these non-GAAP financial mea
Slide 17: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures Adjusted net sales; adjusted business segment operating profit; adjusted net earnings; adjusted diluted earnings per share (EPS); adjusted cash from operations; adjusted free cash flow (non-GAAP) Adjusted net sales, adjusted business segment operating profit, adjuste
Slide 18: Appendix I – Guidance Detail
Appendix I – Guidance Detail 2025 Outlook ($M), Except for EPS Sales $73,750 - $74,750 Segment Operating Profit* $8,100 - $8,200 Segment Margin* 11.0% FAS/CAS Operating Adjustment** ~$1,520 Other, net ~($705) Consolidated Operating Profit $8,915 - 9,015 Net-Operating FAS Pension Income** ~($395) Int
Slide 19: Appendix II – Business Area Guidance
Appendix II – Business Area Guidance Segment ($M) Sales Operating Profit* AERO $29,300 – 29,700 $2,920 – 2,960 MFC $13,600 – 13,900 $1,905 – 1,935 RMS $18,100 – 18,300 $2,040 – 2,060 SPACE $12,750 – 12,850 $1,235 – 1,245 LM Total $73,750 – 74,750 $8,100 – 8,200 19 *See Charts 16-17 for Definitions o
Slide 20: Appendix III – 4th Quarter 2024 Adjusted Results
Appendix III – 4th Quarter 2024 Adjusted Results 4Q24 Values For Quarter-Over-Quarter Comparison Reported Adjusted ($M), Except for EPS Impacts Results Results Sales $18,622 $165 $18,787** Segment Operating Profit* $426 $1,650 $2,076 Segment Operating Profit Margin* 2.3% N/A 11.1% Diluted EPS $2.22
Slide 21: Appendix IV - Pension
Appendix IV - Pension 21 *See Chart 22 for Acronyms
Slide 22: Appendix V – Acronyms
Appendix V 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 –