Lockheed Martin Corp. (LMT.US) released its Q4 2024 earnings report today, with shares declining up to 3.5% in premarket trading as the defense giant grappled with significant losses on classified programs and issued lower-than-expected 2025 guidance. Despite a record backlog demonstrating strong global demand, the company faces challenges with program execution and technology upgrades.
Q4 2024 Results:
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Open account Try demo Download mobile app Download mobile app- Revenue: $18.62 billion (-1.3% YoY) vs $18.84 billion expected
- EPS: $2.22 vs $7.58 YoY
- Operating profit: $696.0 million (-70% YoY) vs $2.07 billion expected
- Free cash flow: $441.0 million (-73% YoY) vs $1.26 billion expected
- Backlog: $176.04 billion (+9.6% YoY)
Segment Performance:
- Aeronautics: $8.01 billion revenue (+5.2% YoY), $434 million operating profit (-43% YoY)
- Missiles and Fire Control: $3.41 billion revenue (+7.6% YoY), $804 million operating loss
- Rotary and Mission Systems: $4.26 billion revenue (-9.6% YoY), $513 million operating profit (-11% YoY)
- Space: $2.94 billion revenue (-13% YoY), $283 million operating profit (-7.8% YoY)
2025 Financial Outlook:
- Net sales: $73.75-74.75 billion vs $74.02 billion expected
- EPS: $27.00-27.30 vs $27.82 expected
- Free cash flow: $6.60-6.80 billion vs $6.45 billion expected
- Business segment operating profit: $8.10-8.20 billion
- Capital expenditure: ~$1.90 billion
Significant Program Impacts:
- Booked $2 billion in losses on classified programs in 2024
- $1.4 billion loss in Missiles and Fire Control portfolio
- $555 million overrun in Aeronautics division
- F-35 program experiencing delays in Technology Refresh 3 upgrade rollout
- Delivered 62 F-35 aircraft in Q4
CEO Commentary: Jim Taiclet highlighted the company's 5% sales growth and record backlog as evidence of strong global demand for advanced defense technology. He characterized 2024 as "successful and productive" despite significant program challenges.
Lockheed Martin Corp. (LMT.US D1 Interval)
The stock is trading slightly below the 30-day SMA in premarket. Bears will aim for a retest of January lows at $460, while bulls will attempt to break the resistance at the 23.6% Fibonacci retracement level, which is beginning to coincide with the 50-day SMA. The RSI is likely to show signs of bearish divergence, while the MACD is expected to tighten at market open. Source: xStation
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