Lockheed Martin has reported 2024 net sales of $71 billion, a 5 percent increase from $67.57 billion generated in 2023, and backlogs of $176 billion compared to just $160.6 billion the year prior. The company said in its recent earnings release that it is expecting a modest increase in net sales in 2025.
“2024 was another successful and productive year for Lockheed Martin,” declared Jim Taiclet, chairman, president and CEO of Lockheed and a previous Wash100 Award recipient. “Our 5 percent sales growth and record year-end backlog of $176 billion demonstrate the enduring global demand for our advanced defense technology and systems.”
Lockheed Incurs Losses From Classified Program
Despite the growth of the company’s full-year net sales, its aeronautics and missiles and fire control business segments recorded losses associated with existing military contracts.
In a fixed-price incentive fee contract, Lockheed Aeronautics recognized losses of $410 million across program phases. The contract involves the design and integration of a complex system for an unnamed customer. Lockheed said it already performed a comprehensive review of the program and increased projected costs in engineering and integration activities to achieve certain milestones.
Lockheed MFC, meanwhile, has a cost-reimbursable base contract for another classified project. The contract includes options that the company already estimates would incur losses if exercised.
Lockheed warns that, throughout 2024, MFC recognized losses of $1.4 billion for the program, including $1.31 billion from the fourth quarter alone.
Per Segment Financial Performance
Both aeronautics and MFC segments ended 2024 with higher year-over-year net sales. Lockheed Aeronautics achieved $8 billion in net sales in the fourth quarter, a 5 percent increase or $396 million increase. The company attributes it to the higher volume of F-35 production and sustainment contracts.
Lockheed MFC’s net sales in the fourth quarter also increased to $3.41 billion, an 8 percent hike from the figures during the same period in 2023. The segment’s net sales growth was driven by increased production of Joint Air-to-Surface Standoff Missile, Long Range Anti-Ship Missile, Guided Multiple Launch Rocket Systems and Patriot Advanced Capability-3.
The rotary and mission systems and space segments saw their net sales decline by 10 percent and 13 percent, respectively.
Financial Expectations for 2025
Lockheed estimates its net sales for the full year 2025 to increase to between $73.75 billion and $74.75 billion.
“Our leading technical and manufacturing capabilities, the innovative spirit that originated in our Skunk Works operation, our incredibly capable workforce, along with the derisking actions we executed in the fourth quarter, position us well for strong performance in 2025,” added Taiclet. “We look forward to working with the incoming administration to best serve our customers with highly reliable, theater-level mission solutions that can win wars while delivering compelling results to our shareholders.”