Lockheed Martin (NYSE: LMT) reported $16 billion in net sales and $614 million, or $2.21 per share, in net earnings from continuing operations during the third quarter of fiscal year 2021.
The Bethesda, Maryland-based aerospace and defense contractor said Tuesday it generated $1.9 billion in Q3 cash from operations, raised its quarterly dividend to $2.80 per share and increased by $5 billion its share repurchase authority.
Jim Taiclet, chairman, president and CEO of Lockheed and a 2021 Wash100 Award recipient, said the company’s employees continued to provide capabilities during the third quarter in support of U.S. and allied defense and civil space programs.
“At the same time, we continued to advance the state of the art and innovation across key technologies, including Future Vertical Lift, Integrated Air and Missile Defense, hypersonic weapon systems, next generation satellites, and many others,” Taiclet noted.
Lockheed’s missiles and fires control segment saw its Q3 operating profit rise 2 percent to $413 million and posted $2.78 billion in net sales during the quarter. The company’s aeronautics business reported Q3 net sales of $6.56 billion and $714 million in operating profit, which reflects a 1 percent increase from the same period last year.
Taiclet said the company is also adjusting its capital allocation strategy with two objectives in mind and the first one focuses on expanding its reinvestment efforts to meet clients’ evolving requirements through independent research and development and capital projects.
“Simultaneously, we plan to reward shareholders with continued dividend growth and meaningful increases to the scale and rate of our share repurchase program,” he added.
Defense News reported that Lockheed expects to close its planned $4.4 billion acquisition of Aerojet Rocketdyne (NYSE: AJRD) in the first quarter of 2022.
“The Aerojet Rocketdyne transaction continues moving through the regulatory approval process. And we now anticipate closing in the first quarter of 2022,” Taiclet told analysts during Lockheed’s earnings call Tuesday.
