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Dec 31, 2022

Lockheed Martin Q4 2022 Earnings Report

Lockheed Martin's Q4 2022 financial results were reported, demonstrating the company's resilience and commitment to meeting obligations in challenging environments.

Key Takeaways

Lockheed Martin reported Q4 2022 net sales of $19.0 billion, compared to $17.7 billion in Q4 2021. Net earnings were $1.9 billion, or $7.40 per share, compared to $2.0 billion, or $7.47 per share, in Q4 2021. The company's backlog increased 11% to $150 billion compared to Q4 2021.

Net sales reached $19.0 billion, up from $17.7 billion in the same quarter last year.

Net earnings were $1.9 billion, resulting in $7.40 earnings per share.

Cash from operations totaled $1.9 billion, with a free cash flow of $1.2 billion.

The company returned $5.0 billion to shareholders through share repurchases and dividends.

Total Revenue
$19B
Previous year: $17.7B
+7.1%
EPS
$7.79
Previous year: $7.47
+4.3%
Backlog
$150B
Gross Profit
$2.3B
Previous year: $2.42B
-5.0%
Cash and Equivalents
$2.55B
Previous year: $3.6B
-29.3%
Free Cash Flow
$1.24B
Total Assets
$52.9B
Previous year: $50.9B
+3.9%

Lockheed Martin

Lockheed Martin

Lockheed Martin Revenue by Segment

Forward Guidance

Lockheed Martin provided its 2023 financial outlook, expecting net sales between $65.0 and $66.0 billion and diluted earnings per share between $26.60 and $26.90.

Positive Outlook

  • Net sales ~$65,000 - $66,000 million
  • Business segment operating profit ~$7,010 - $7,110 million
  • Effect of Jan. 1, 2023 reclassification of intangible amortization expense ~$245 million
  • Total FAS/CAS pension adjustment ~$2,100 million
  • Cash from operations ≥$8,150 million

Challenges Ahead

  • Capital expenditures ~$(1,950) million
  • The company’s current 2023 financial outlook does not include any future gains or losses related to changes in valuations of the company's net assets and liabilities for deferred compensation plans or mark-to-market investments.
  • The outlook assumes continued accelerated payments to suppliers, with a focus on small and at-risk businesses.
  • In addition, the outlook reflects no significant reduction in customer budgets or changes in priorities, continued support and funding of the company’s programs, and a statutory tax rate of 21%.
  • It also includes known impacts to the company and broader defense supply chain from the COVID-19 pandemic based on the company’s understanding at the time of this news release and its experience to date.

Revenue & Expenses

Visualization of income flow from segment revenue to net income