Lockheed Martin (NYSE: LMT) reported a 9 percent year-over-year increase in fiscal 2024 second-quarter net sales to $18.1 billion, a total backlog of $158 billion and Q2 net earnings of $1.6 billion, or $6.85 per share.
The Bethesda, Maryland-based aerospace and defense contractor said Tuesday it recorded $1.9 billion in cash from operations and free cash flow of $1.5 billion during the second quarter of 2024.
Lockheed returned $1.6 billion to shareholders in the form of cash dividends and share repurchases.
Financial Performance of 4 Business Segments
The aeronautics business recorded $7.3 billion in Q2 net sales, up 6 percent from the prior-year period due to the increase in the F-35 and F-16 fighter aircraft programs.
Net sales of the company’s missiles and fire control business during the quarter rose 13 percent to $3.1 billion, which the company attributed to higher net sales recorded by tactical and strike missile programs due to the production ramp-up on Long Range Anti-Ship Missile program and Guided Multiple Launch Rocket Systems.
The rotary and mission systems segment saw its revenue rise 17 percent to $4.5 billion. The increase was linked to higher net sales on integrated warfare systems and sensors programs and higher production volume on Black Hawk and CH-53K helicopters.
The space segment’s net sales during the quarter climbed 1 percent to $3.2 billion, which the company attributed to strategic and missile defense programs due to higher volume on Fleet Ballistic Missile and hypersonic programs.
Update on F-35 Program’s Technology Refresh 3
Jim Taiclet, chairman, president and CEO of Lockheed, said the company started deliveries of the TR-3 configured F-35 fighter jets to the U.S. government.
TR-3 includes software and hardware upgrades to the F-35 aircraft.
“The TR-3 upgrade and further Block 4 enhancements represent a critical evolution in capability and their full development remains a top priority for us. These and further software updates over the life of the program will ensure that F-35 remains an effective deterrent to aggression and the cornerstone of Joint All-Domain operations now and decades into the future,” the two-time Wash100 awardee told analysts during the earnings call Tuesday.
Taiclet noted that Lockheed continues to manufacture at a rate of 156 aircraft per year and expects to deliver 75 to 100 planes to the government during the second half of 2024.
“Over 95% of TR-3 capabilities are currently being flight-tested and we look forward to delivering full TR-3 combat capability to the customer. In addition, we expect deliveries of F-35 aircraft to exceed production for the next few years,” the chief executive added.
