Lockheed Martin (NYSE: LMT) reported its fourth quarter and full year 2023 results. The full-year net sales were stronger than expected, rising two percent year-over-year to $67.6 billion, although it dipped half a percent lower in Q4 2023 to $18.9 billion versus Q4 2022.
“Our solid finish to 2023 and full-year results reflect continued strong demand for our all-domain portfolio of advanced defense tech solutions. Backlog reached a record $160.6 billion,” Jim Taiclet, chairman, president and CEO of Lockheed, said in a statement published Tuesday.
While net earnings decreased 2.4 percent in the quarter to $1.86 billion compared to the same quarter in 2022, full year net earnings of $6.9 billion was 20.7 percent higher than a year ago. Notably, free cash flow in Q4 2023 rose 34.5 percent to $1.66 billion.
“In 2023, we invested $1.5 billion in research and development and an additional $1.7 billion of capital expenditures to create, accelerate, and refine the development of innovative 21st Century Security capabilities,” added Taiclet. The two-time Wash100 awardee also said Lockheed returned approximately 145 percent of free cash flow to shareholders, over $9 billion through dividends and share buybacks.
For 2024, Lockheed expects a low-digit sales growth versus the higher base last year. The global security and aerospace company forecast free cash flow between $6 billion and $6.3 billion. Taiclet said the ongoing dividends and expectation for $4 billion of share repurchases will sustain the focus on returns to shareholders.
Taiclet is confident that Lockheed Martin will continue to advance and realize the vision for 21st Century Security integrated platforms and systems.
The earnings release on Tuesday, Jan. 23, 2024, coincided with Lockheed’s delivery of the first of eight C-130J-30 Super Hercules tactical airlifters to the Georgia Air National Guard. The 165th Airlift Wing, the longtime operator of C130 Hercules, will operate the Super Hercules.
