Q3 2024 Lockheed Martin Corp Earnings Call Transcript
Key Points
- Lockheed Martin Corp (LMT) reported a record backlog of over $165 billion, indicating strong demand across all business areas.
- The company achieved a book-to-bill ratio of 1.3, driven by significant orders for precision and air defense munitions.
- Free cash flow for the quarter was $2.1 billion, supporting a 5% increase in the quarterly dividend to $3.30, marking the 22nd consecutive year of dividend increases.
- Lockheed Martin Corp (LMT) delivered 48 F-35 aircraft in the quarter and expects to deliver between 90 to 110 aircraft in 2024, with a strong future outlook for the F-35 program.
- The company is heavily investing in autonomy, AI, and digital technologies, demonstrating successful AI-driven teaming scenarios with drones and ground vehicles.
- Sales in the Aeronautics segment declined 3% year over year due to delays in F-35 Lot 18/19 contract negotiations.
- The company faces challenges with the F-35 Tech Refresh 3, with only 95% of combat capabilities validated, affecting delivery schedules.
- Lockheed Martin Corp (LMT) recorded incremental risk on a classified aeronautics program, resulting in additional losses.
- The company is experiencing pension headwinds, with plans to address these through working capital improvements and potential debt issuance.
- The ongoing Lot 18/19 negotiations for the F-35 program are impacting cash flow, as the government cannot make payments until the contract is finalized.
Good day, and welcome, everyone, to the Lockheed Martin third quarter 2024 earnings results conference call. Today's call is being recorded. (Operator Instructions) At this time, for opening remarks and introductions, I would like to turn the call over to Maria Ricciardone, Vice President, Treasurer, and Investor Relations. Please go ahead.
Thank you, Steve, and good morning. I'd like to welcome everyone to our third quarter 2024 earnings conference call. Joining me today on the call are Jim Taiclet, our Chairman, President, and Chief Executive Officer; and Jay Malave, our Chief Financial Officer. Statements made in today's call that are not historical facts are considered forward-looking statements and are made pursuant to the Safe Harbor provisions of federal securities law.
Actual results may differ materially from those projected in the forward-looking statements. Please see today's press release and our SEC filings for a description of some of the factors that may
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