Lockheed Martin boosts outlook after strong second quarter

The F-35 and F-16 fighter programmes helped boost Lockheed Martin Aeronautics performance in the second quarter of 2024. Danish F-35 and F-16 jets (pictured above) fly together to mark the arrival of the first four Danish F-35s in October 2023. (NATO)

Lockheed Martin has increased its full-year outlook for 2024 after a positive second quarter. Net sales totalled USD18.1 billion, compared with USD16.7 billion in the second quarter of 2023, according to a Lockheed Martin statement on 23 July. Net earnings were USD1.6 billion, down from USD1.7 billion in 2023, while cash from operations reached USD1.9 billion, up from USD1.1 billion in 2023. Free cash flow totalled USD1.5 billion, nearly twice the USD771 million reached in the second quarter of 2023, bringing the total for 2024 to just under USD2.8 billion, Jay Malave, chief financial officer of Lockheed Martin, said during an earnings call on 23 July. Research and development investment in the second quarter reached USD405 million, while capital expenditures totalled USD370 million. The backlog remained high at USD158 billion, down from USD160 billion at the end of 2023, he added.

In the second quarter, sales increased 9% year on year and 5% sequentially, reflecting growth in all four business segments, James Taiclet, chairman, president, and CEO of Lockheed Martin, said during the earnings call. A focus on operational execution enabled the company to achieve segment operating margins of 11.3%, he added.