Lockheed Martin (LMT) Financials

Lockheed Martin's financial performance over the past several years shows several notable trends across its income, cash flow, and balance sheet metrics.

• Revenue and Operating Income: The company has demonstrated generally steady operating revenue, with quarterly revenues mostly in the $16.6 billion to $18.6 billion range in recent quarters. Operating income varies but remains solid, indicating controlled costs relative to revenue.
• Net Income Growth: Net income has shown some fluctuations but maintains a positive trend, with quarterly net incomes typically in the $1.5 billion to $1.8 billion range and showing resilience in recent quarters despite some dips.
• Strong Cash Flow from Operations: Lockheed Martin consistently generates positive net cash from operating activities, often exceeding $1 billion quarterly, reflecting solid core business cash generation.
• Capital Investments Maintained: The company invests between $300 million and $700 million quarterly in property, plant, and equipment, supporting ongoing operations and growth initiatives.
• Debt Management: Long-term debt has been managed in the range of $15 billion to $19 billion, with active repayments and new issuances to optimize capital structure. The company balances debt issuance with repayments each quarter.
• Shareholder Returns: Lockheed Martin maintains a strong dividend payout, with cash dividends per share consistently increasing, reaching $3.30 per share in Q2 2025, supporting income-focused investors.
• Share Repurchases: The company actively repurchases common equity, with buybacks ranging from hundreds of millions to several billion dollars, reflecting confidence in the company's valuation and commitment to shareholder returns.

• Inventory and Receivables: Inventories and accounts receivable balance are stable but represent a sizable portion of current assets, requiring effective management to maintain liquidity.
• Other Assets/Liabilities: Other current and noncurrent assets and liabilities are sizable and somewhat fluctuating, indicating complexity in operational and financial structures typical for a large defense contractor.
• Interest Expense and Income: Interest expense is consistently around $200-$270 million quarterly, with investment income partially offsetting expenses, indicating moderate financing costs.

• Negative Net Cash Change: Several quarters show negative net change in cash and equivalents, driven by cash outflows from financing activities and investing, which could affect short-term liquidity if persistent.
• Volatile Changes in Operating Assets and Liabilities: Changes in operating assets and liabilities show volatility, with large negative impacts on operating cash flow in some quarters, reflecting working capital pressures.
• Other Investing Activities: The company frequently records negative cash flow from other investing activities, sometimes significant, which may reflect strategic expenditures but also cash outflows.
• Accumulated Other Comprehensive Loss: The company's equity includes a large accumulated other comprehensive loss (AOCI) in the range of -$8 billion, which negatively impacts total equity.
• Fluctuations in Shareholders' Equity: Total common equity has seen declines in certain periods, which may reflect share repurchases and other comprehensive losses impacting shareholders' net worth.
• Interest Expense Trending Higher: Interest expense increased gradually over the years, indicating a rising cost of debt or increased borrowing, which could pressure net income if unchecked.

Summary: Lockheed Martin continues to generate solid revenue and net income, backed by strong operating cash flows and maintained capital investments. The firm actively returns value to shareholders through dividends and repurchases, which investors may find attractive. However, investors should monitor cash flow volatility, working capital dynamics, and rising interest expenses, as well as the impact of accumulated comprehensive losses on equity.