F-35, missile programmes deliver solid results for Lockheed Martin

A US Air Force F-35A Lightning II fighter aircraft of the 356th Expeditionary Fighter Squadron. (US Air Force/Staff Sergeant Zade Vadnais)

Lockheed Martin attained solid results in the fourth quarter of 2024 despite charges on two classified programmes, James Taiclet, chairman, president, and CEO of Lockheed Martin, said during an earnings call on 28 January. “Our return to growth strategy that we implemented three years ago is well on its way and remains on a strong trajectory,” he said. “We fully expect these positive trends to continue in our 2025 outlook with mid-single-digit growth in sales [and] segment operating profit returning to 11%.”

Fourth quarter

In the fourth quarter, “sales of USD18.6 billion were down slightly year on year”, affected by having one fewer week compared with the fourth quarter of 2023, Jay Malave, chief financial officer for Lockheed Martin, said during the call. “Aeronautics led the way with almost USD20 billion in orders driven by the F-35 Lot 18 and fiscal year (FY) [20]25 air vehicle sustainment contract awards.”

More than USD1.1 billion was invested “towards independent research and development and capital expenditure projects” in the quarter, bringing total 2024 investment to USD3.3 billion, Malave said.

Over the full year, Lockheed Martin achieved sales of USD71 billion, 5% growth over 2023, “driven by improved backlog conversion reflecting stronger throughput across the entire value chain”, Malave said. Backlog grew 10% to USD176 billion, he added.

Segment results

F-35 production and sustainment contracts in the fourth quarter drove 5% growth year on year in the Aeronautics business, Maria Ricciardone, vice-president, treasurer, and investor relations at Lockheed Martin, said during the call. This was partially offset by lower volume at Skunk Works due to the charge on the classified programme.