Slide 1: Lockheed Martin Corporation 3rd Quarter 2024 Conference Call
Lockheed Martin Corporation 3rd Quarter 2024 Conference Call October 22, 2024 JAMES D. TAICLET Chairman, President and CEO JAY MALAVE Chief Financial Officer MARIA RICCIARDONE Vice President, Treasurer & Investor Relations Webcast login at: www.lockheedmartin.com/investor Webcast replay & podcast av
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 wo
Slide 3: 3Q 2024: Setup for a Strong Finish to the Year
3Q 2024: Setup for a Strong Finish to the Year Solid Financial Results • Record Backlog • Strong Free Cash Flow • Disciplined & Dynamic Cash Deployment Driving Operational Performance • F-35 Progress • Investing in Versatile Technologies 21st Century Security® Rapid Integration of Technology • Skunk
Slide 4: 3Q 2024 Financial Highlights
3Q 2024 Financial Highlights $17.1B $1.9B Sales Segment Operating Profit* 10.9% $6.80 1.3x Segment Operating Margin* Earnings Per Share Book-to-Bill Ratio* $2.1B $0.85B $0.75B $0.7B Delivered in Free Cash Flow* Of Share Repurchases In Dividends Of Independent Research & Returns to Shareholders Devel
Slide 5: Aeronautics
Aeronautics 3rd Quarter ($M) Sales Operating Profit* $6,717 $6,487 $671 $659 10.0% 10.2% 2023 2024 2023 2024 Sales: Decreased 3% Operating Profit: Decreased 2% Lower Volume on F-35 Lower Volume and Mix, Partially Offset by (Lot 18/19 Negotiations), Higher Profit Booking Rate Adjustments Partially Of
Slide 6: Missiles & Fire Control
Missiles & Fire Control 3rd Quarter ($M) Sales Operating Profit* $3,175 $2,939 $456 $398 13.5% 14.4% 2023 2024 2023 2024 Sales: Increased 8% Operating Profit: Increased 15% Higher Volume Due to Higher Volume and Production Ramps at TSM Higher Profit Booking Rate Adjustments (primarily GMLRS & LRASM)
Slide 7: Rotary & Mission Systems
Rotary & Mission Systems 3rd Quarter ($M) Sales Operating Profit* $4,121 $4,367 $482 $483 11.7% 11.1% 2023 2024 2023 2024 Sales: Increased 6% Operating Profit: Comparable Higher Volume at IWSS Higher Volume, Offset by (primarily Radars & CSC) Lower Profit Booking Rate Adjustments and Sikorsky (prima
Slide 8: Space
Space 3rd Quarter ($M) Sales Operating Profit* $3,101 $3,075 $259 $272 8.4% 8.8% 2023 2024 2023 2024 Sales: Decreased 1% Operating Profit: Increased 5% Lower Volume at CCS (Orion), Favorable Mix, Partially Offset by Partially Offset by Higher Volume at SMD Lower ULA Equity Earnings (Reentry programs
Slide 9: Updated 2024 Outlook
Updated 2024 Outlook ($M), Except for EPS Prior Current Sales $70,500 - $71,500 ~$71,250 Segment Operating Profit* $7,350 - $7,500 ~$7,475 Total FAS/CAS Pension Adjustment ~$1,685 ~$1,685 Diluted EPS $26.10 - $26.60 ~$26.65 Cash from Operations $7,750 - 8,050 ~$7,950 Capital Expenditures ~($1,750) ~
Slide 10: Well Positioned for Growth in 2025 and Beyond
Well Positioned for Growth in 2025 and Beyond Backlog Mutli-Year Growth Framework $166B Baseline Catalysts Opportunity Campaign Wins $135B Sales Low Single Digit Production Ramps Mid Single Digit Growth CAGR Growth CAGR Budgets & Funding + 10 bps + 20 bps Segment Margins Program De-Risking per year
Slide 11: Summary
Summary • Updated 2024 Outlook and Increased Confidence in Multi-year Forecast • Continued Investment into Transformation Activities and Next Generation Technologies • Focused on Performance to Deliver Value for Stakeholders 3Q Earnings Results Conference Call 11
Slide 12: Lockheed Martin
LOCKHEED MARTIN
Slide 13: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures Non-GAAP Financial Measures Disclosure This presentation, and today’s conference call remarks, contain non-Generally Accepted Accounting Principles (GAAP) financial measures (as defined by SEC Regulation G). While management believes that these non-GAAP financial mea
Slide 14: Appendix I: 2024 Outlook
Appendix I 2024 Outlook ($M), Except for EPS Sales ~$71,250 Segment Operating Profit* ~$7,475 Segment Margin 10.5% FAS/CAS Operating Adjustment** ~$1,625 Other, net ~($730) Consolidated Operating Profit ~$8,370 Net-Operating FAS Pension Income** ~$60 Interest Expense ~($1,035) Effective Tax Rate 15.
Slide 15: Appendix II: Segment Outlook
Appendix II Segment ($M) Sales Operating Profit* AERO ~$28,600 ~$2,840 MFC ~$12,550 ~$1,475 RMS ~$17,350 ~$1,920 SPACE ~$12,750 ~$1,240 LM Total ~$71,250 ~$7,475 *See Chart 13 for Definitions of Non-GAAP Measures. 3Q Earnings Results Conference Call 15
Slide 16: Appendix III
Appendix III 3Q 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 –