Lockheed Martin Reports Q4 2024 Earnings Growth Amid Challenges

Lockheed Martin's Q4 2024 earnings call highlighted a 5% sales growth year-over-year. Despite charges from classified programs impacting profits, the company is optimistic about future segments' performance and double-digit free cash flow growth in 2025.

Date: 28-01-2025

AI Rating: 7

Overview of Earnings Performance
Lockheed Martin's Q4 2024 earnings report shows a growth trajectory with sales increasing by 5% year-over-year. However, it's important to note that the company has faced challenges due to unplanned charges related to classified programs, which have negatively impacted its segment operating profit and margins.

Free Cash Flow (FCF)
The report emphasizes a strong focus on free cash flow, with the company generating $5.3 billion in FCF for the full year 2024. Going forward, Lockheed Martin anticipates double-digit growth in free cash flow per share in 2025, indicating a continued commitment to returning value to shareholders through dividends and share repurchases.

Return on Equity (ROE)
While specific ROE figures aren't provided, the emphasis on improving profitability and increasing cash flow signals a commitment to enhancing shareholder value, which is closely associated with improving ROE in the longer run.

Outlook and Investments
Lockheed Martin's investment in research and development of $3.3 billion in 2024 shows a strong commitment to innovation. The company’s projection for mid-single-digit sales growth and a goal of 11% segment operating profit in 2025 further indicate a positive outlook despite recent challenges.

Stocks: LMT