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Lockheed Martin has experienced a notable year of progress in 2024, with a sales increase of 5% and an unprecedented year-end backlog valued at $176bn, signalling sustained international interest in its defence solutions and technologies.
In the year ended 31 December 2024, the company’s net sales were $71.04bn, up from $67.57bn in 2023.
Net earnings for the year were $5.33bn, or $22.31 per share, a decrease from $6.92bn, or $27.55 per share, in 2023.
The company’s cash from operations in 2024 totalled $7.0bn after pension contributions, compared to $7.9bn in 2023.
Free cash flow for the year was also lower at $5.3bn after pension contributions, down from $6.2bn in the previous year.
During the fourth quarter (Q4) of 2024, the company reported a decline in net sales to $18.62bn from $18.87bn in Q4 2023.
The company’s net earnings saw a drop to $527m in Q4 2024, down from $1.88bn in the corresponding quarter of the previous year.
Basic earnings per share (EPS) also fell to $2.23, compared to $7.61 in Q4 2023, while diluted EPS decreased to $2.22 from $7.58.
The company’s cash flow from operations was reported at $1bn in Q4 2024 after a pension contribution, a decrease from $2.4bn in the same quarter of 2023.
Free cash flow followed a similar trend, standing at $441m after the pension contribution, compared to $1.7bn in Q4 2023.
The company noted that the results for Q4 2024 included 13 weeks of activity, one week less than the 14-week period in Q4 2023, which is claimed to have negatively impacted sales volume across the company.
Aeronautics segment net sales increased by $396m, or 5%, in Q4 2024 compared to the same period in 2023.
This is attributed to an $860m increase in net sales on the F-35 programme, driven by higher volume on production and sustainment contracts.
However, a decrease of $380m on classified programmes was observed, due to the recognition of losses on a particular contract.
The segment’s operating profit for Q4 2023 decreased by $327m, or 43%, compared to the same period in 2023.
Lockheed Martin chairman, president and CEO Jim Taiclet said: “In the year, we invested over $3bn in advancing our nation’s security through research and development and capital investment to support our customers’ missions, drive innovation and transform our operations with the latest digital and manufacturing technologies.
“Our strong and consistent performance also enabled us to again return greater than 100% of free cash flow to our shareholders in 2024.”
Looking forward to the full year of 2025, Lockheed Martin projects net sales to range between $73.75bn and $74.75bn, with diluted EPS expected to be between $27.00 and $27.30, and free cash flow anticipated to be between $6.60bn and $6.80bn.