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    Lockheed Martin Corp (LMT)

    Board Change

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    Business Description

    Lockheed Martin Corporation is a global aerospace and defense company that operates in four primary business segments, focusing on advanced military and defense technologies. The company designs and manufactures military aircraft, missile defense systems, helicopters, and space systems, with a significant portion of its sales coming from the U.S. Government, particularly the Department of Defense . Lockheed Martin's strategy centers on integrating advanced technologies into defense systems to enhance agility and adaptability .

    1. Aeronautics - Develops advanced military aircraft, including the F-35 Lightning II, which is the company's largest program .
    2. Missiles and Fire Control (MFC) - Provides air and missile defense systems, tactical missiles, and precision strike weapon systems .
    3. Rotary and Mission Systems (RMS) - Designs and supports military and commercial helicopters, missile defense systems, and cyber solutions .
    4. Space - Involved in satellites, space transportation systems, and strategic defense systems .

    Key Metrics

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    Executive Team

    NamePositionStart DateShort Bio
    Timothy S. CahillExecutive Vice President – Missiles and Fire ControlNovember 2022Timothy S. Cahill is the Executive Vice President for the Missiles and Fire Control (MFC) business segment at Lockheed Martin. He previously served as Senior Vice President of Global Business Development & Strategy .
    Stephanie C. HillExecutive Vice President – Rotary and Mission SystemsJune 2020Stephanie C. Hill has served as the Executive Vice President of the Rotary and Mission Systems (RMS) business segment at Lockheed Martin since June 2020. She was previously the Senior Vice President of Enterprise Business Transformation .
    Maryanne R. LavanSenior Vice President, General Counsel and Corporate SecretarySeptember 2010Maryanne R. Lavan has served as Senior Vice President, General Counsel and Corporate Secretary at Lockheed Martin Corporation since September 2010, providing legal counsel and overseeing corporate governance matters .
    Robert M. Lightfoot, Jr.Executive Vice President – SpaceJanuary 2022Robert M. Lightfoot, Jr. has served as the Executive Vice President of the Space business segment at Lockheed Martin since January 2022. He was previously Vice President, Operations for the Space business segment .
    Jesus MalaveChief Financial OfficerJanuary 31, 2022Jesus Malave has served as the Chief Financial Officer of Lockheed Martin Corporation since January 31, 2022. He was previously the Senior Vice President and Chief Financial Officer at L3Harris Technologies, Inc. .
    H. Edward Paul, IIIVice President and ControllerJune 2022H. Edward Paul, III has served as Vice President and Controller at Lockheed Martin Corporation since June 2022. He was previously Vice President, Accounting .
    Maria A. RicciardoneVice President, Treasurer and Investor RelationsJanuary 1, 2024Maria A. Ricciardone has served as Vice President, Treasurer and Investor Relations at Lockheed Martin since January 1, 2024. She was previously Vice President, Investor Relations .
    Frank A. St. JohnChief Operating OfficerJune 2020Frank A. St. John is the Chief Operating Officer at Lockheed Martin Corporation since June 2020. He was previously Executive Vice President of Rotary and Mission Systems (RMS) .
    James D. TaicletChairman, President, and Chief Executive OfficerJune 2020James D. Taiclet has served as Chairman, President, and Chief Executive Officer (CEO) of Lockheed Martin since June 2020. He was elected as Chairman in March 2021 .
    Gregory M. UlmerExecutive Vice President – AeronauticsFebruary 2021Gregory M. Ulmer is the Executive Vice President for the Aeronautics business segment at Lockheed Martin since February 2021. He was previously Vice President and General Manager of the F-35 Lightning II Program .

    Questions to Ask Management

    1. Regarding the F-35 program, can you elaborate on the specific challenges you are facing with the finalization of the TR3 software and how this might impact aircraft delivery schedules and cash flow in the coming quarters?
    2. Given the incremental losses you've realized on certain classified programs due to aggressive bidding, what measures are you implementing to improve cost estimation and bidding practices to prevent future cost overruns?
    3. With the anticipated pension contribution headwinds, can you provide more details on your plans to mitigate these, including any considerations for inorganic measures like debt issuance, and how this might affect your financial flexibility?
    4. Considering the increased demand reflected in your record backlog, what steps are you taking to address potential supply chain constraints to ensure you can meet production targets and customer commitments?
    5. In the context of the evolving tactical fighter landscape and the development of Collaborative Combat Aircraft (CCA), how is Lockheed Martin positioning itself to remain competitive, especially considering that non-traditional companies have been awarded contracts in Increment 1, and how does this influence your strategy for programs like NGAD and the F-35?

    Share Repurchase Program

    Program DetailsProgram 1
    Approval DateOctober 2010
    End Date/DurationNo expiration date
    Total additional amount$3.0 billion (October 2024)
    Remaining authorization amount$10.3 billion (as of 2024-12-21)
    DetailsPart of a strategy to return cash to stockholders through dividends and share repurchases. The program can be amended or terminated by the Board of Directors at any time.

    Debt Maturity Schedule

    YearAmount Due (in millions)Debt TypeInterest Rate (%)% of Total Debt
    2025$500 4.95% Notes4.95 2.3% = (500 / 21,600) * 100
    2026$1,000 3.55% Notes3.55 4.6% = (1,000 / 21,600) * 100
    2027$750 5.10% Notes5.10 3.5% = (750 / 21,600) * 100
    2028$500 4.45% Notes4.45 2.3% = (500 / 21,600) * 100
    2029$650 4.50% Notes4.50 3.0% = (650 / 21,600) * 100
    2030$400 1.85% Notes1.85 1.9% = (400 / 21,600) * 100
    2031$600 4.70% Notes4.70 2.8% = (600 / 21,600) * 100
    2032$800 3.90% Notes3.90 3.7% = (800 / 21,600) * 100
    2033$1,000 5.25% Notes5.25 4.6% = (1,000 / 21,600) * 100
    2034$1,450 4.75% and 4.80% Notes4.75-4.80 6.7% = (1,450 / 21,600) * 100
    2035$500 3.60% Notes3.60 2.3% = (500 / 21,600) * 100
    2036$1,054 4.50% and 6.15% Notes4.50-6.15 4.9% = (1,054 / 21,600) * 100
    2042$1,336 4.07% Notes4.07 6.2% = (1,336 / 21,600) * 100
    2045$1,000 3.80% Notes3.80 4.6% = (1,000 / 21,600) * 100
    2046$1,326 4.70% Notes4.70 6.1% = (1,326 / 21,600) * 100
    2050$750 2.80% Notes2.80 3.5% = (750 / 21,600) * 100
    2052$1,578 4.09% Notes4.09 7.3% = (1,578 / 21,600) * 100
    2053$850 4.15% Notes4.15 3.9% = (850 / 21,600) * 100
    2054$1,000 5.70% Notes5.70 4.6% = (1,000 / 21,600) * 100
    2055$1,050 5.20% Notes5.20 4.9% = (1,050 / 21,600) * 100
    2062$650 4.30% Notes4.30 3.0% = (650 / 21,600) * 100
    2063$750 5.90% Notes5.90 3.5% = (750 / 21,600) * 100
    2064$750 5.20% Notes5.20 3.5% = (750 / 21,600) * 100
    2025-2041$1,313 Other Notes (4.85% to 8.50%)4.85-8.50 6.1% = (1,313 / 21,600) * 100

    Competitors

    Competitors mentioned in the company's latest 10K filing.

    • The Boeing Company - A primary competitor in the defense and aerospace industry .
    • General Dynamics - A primary competitor in the defense and aerospace industry .
    • L3Harris Technologies - A primary competitor in the defense and aerospace industry .
    • Northrop Grumman - A primary competitor in the defense and aerospace industry .
    • RTX Corporation - A primary competitor in the defense and aerospace industry .

    Auditor

    NameStart DateEnd DateReason for Change
    Ernst & Young LLP1994 PresentCurrent auditor

    Latest news

    Recent developments and announcements about LMT.

    Financial Reporting

      Earnings Call

      ·
      8 days ago

      Lockheed Martin (LMT) recently held its fourth quarter and full year 2024 earnings call, providing insights into its financial performance and strategic outlook. Here are the key points from the earnings call:

      • Revenue and Profit Performance: Lockheed Martin reported a 5% year-over-year increase in sales for 2024, reaching $71 billion. The company also achieved a record backlog of $176 billion, indicating strong demand for its products and services. However, the fourth quarter saw a decrease in sales for the Space segment by 13% year-over-year, primarily due to lower volumes on certain programs.

      • Management’s Forward Guidance: The company expects mid-single-digit growth in sales for 2025, with segment operating profit returning to 11% and double-digit growth in free cash flow per share.

      • Strategic Initiatives: Lockheed Martin continues to invest in research and development, with $3.3 billion spent in 2024 to support advanced technology solutions. The company is also focusing on enhancing the performance of key programs like the F-35 and its internal digital transformation initiative, 1LMX.

      • Market Conditions: The demand for the F-35 remains strong, with 110 aircraft delivered in 2024 and expectations to deliver 170 to 190 aircraft in 2025. The company is also progressing with the TR-3 capabilities for the F-35, which are expected to enhance its operational capabilities.

      • Analyst Questions and Management Responses: Analysts inquired about various topics, including the impact of unplanned charges on classified programs and the outlook for Aeronautics margins. Management explained that the charges were part of a derisking strategy and that margins are expected to be slightly lower due to net profit adjustments.

      • Significant Comments on Market Conditions: Lockheed Martin highlighted the importance of maintaining a strong deterrent capability, particularly in light of increased production of competitive aircraft by other nations. The company remains confident in its production targets and the strategic value of its offerings.

      Overall, Lockheed Martin is focused on sustaining growth through strategic investments and maintaining strong demand for its key programs, despite some challenges in specific segments and the broader market environment.

      Earnings Report

      ·
      Jan 28, 2025, 12:45 PM

      Lockheed Martin (LMT) Reports Fourth Quarter and Full Year 2024 Financial Results

      Lockheed Martin Corporation has released its financial results for the fourth quarter and full year of 2024, highlighting key performance metrics and trends:

      Key Financial Highlights

      • Net Sales: Increased by 5% year-over-year to $71.0 billion in 2024, driven by growth across several business segments.
      • Earnings Per Share (EPS): Reported $2.22 for Q4 2024 and $22.31 for the full year, reflecting the impact of losses on classified programs.
      • Free Cash Flow: Generated $5.3 billion in 2024, after a pension contribution of $990 million.
      • Backlog: Achieved a record backlog of $176.0 billion at the end of 2024, indicating strong future demand.

      Segment Performance

      1. Aeronautics:

        • Net Sales: Increased by 4% to $28.6 billion in 2024, driven by higher production and sustainment volumes on the F-35 program.
        • Operating Profit: Declined by 11% due to $555 million in losses on a classified program.

      2. Missiles and Fire Control (MFC):

        • Net Sales: Grew by 13% to $12.7 billion, supported by production ramp-ups on programs like GMLRS and PAC-3.
        • Operating Profit: Dropped by 73%, impacted by $1.4 billion in losses on a classified program.

      3. Rotary and Mission Systems (RMS):

        • Net Sales: Increased by 6% to $17.3 billion, with growth in radar and laser systems programs.
        • Operating Profit: Rose by 3%, aided by favorable contract mix and cost recoveries.

      4. Space:

        • Net Sales: Declined by 1% to $12.5 billion, primarily due to lower volumes on classified and Orion programs.
        • Operating Profit: Increased by 6%, driven by favorable contract mix and higher equity earnings from United Launch Alliance (ULA).

      Challenges and Losses

      • The company faced $2.0 billion in losses on classified programs in 2024, impacting both Aeronautics and MFC segments. These losses were attributed to higher projected costs and performance challenges on complex contracts.

      Shareholder Returns

      • Lockheed Martin returned $6.8 billion to shareholders in 2024 through dividends and share repurchases, exceeding 100% of its free cash flow.

      2025 Financial Outlook

      • Net Sales: Projected to be between $73.75 billion and $74.75 billion.
      • EPS: Expected to range from $27.00 to $27.30.
      • Free Cash Flow: Anticipated to be between $6.6 billion and $6.8 billion.

      CEO Statement

      Jim Taiclet, Chairman, President, and CEO, emphasized the company's strong performance and commitment to innovation, stating:

      “Our 5% sales growth and record year-end backlog of $176 billion demonstrate the enduring global demand for our advanced defense technology and systems”.

      For further details, the company hosted a webcast on January 28, 2025, at 11:00 a.m. ET.

      Sources: , , , , , ,

    Corporate Leadership

      Board Change

      ·
      Dec 11, 2024, 10:08 PM

      Admiral John C. Aquilino has been elected to the Board of Directors of Lockheed Martin Corporation, effective December 11, 2024. He will serve on the Company's Classified Business and Security Committee and is considered an independent director .