Common-Size Income Statement
Quarterly Data
Lockheed Martin Corp., common-size consolidated income statement (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-28), 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-24), 10-Q (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-25), 10-Q (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-26), 10-Q (reporting date: 2021-06-27), 10-Q (reporting date: 2021-03-28).
The common-size income statement reveals several noteworthy trends in the company’s financial performance over the analyzed period. Revenue contributions from Products and Services demonstrate relative stability, though with some fluctuations. Operating costs and expenses consistently represent the largest portion of revenue, while net earnings exhibit considerable variability.
- Revenue Composition
- Products consistently contribute the majority of revenue, typically ranging between 82% and 85% of total sales. Services revenue fluctuates between approximately 15% and 18% of sales. A slight shift towards Services is observed in the earlier part of the period, followed by a return to a higher proportion from Products in more recent quarters. The combined percentage always totals 100% as expected.
- Gross Profit Margin
- The gross profit margin demonstrates volatility. It begins around 13-14% in 2021, dips to a low of 3.83% in September 2021, and then recovers to around 12-13% in 2022 and early 2023. A significant decline is then observed in late 2023 and into 2024, reaching a low of 3.71% in December 2022, before a partial recovery. This suggests potential fluctuations in cost of goods sold or pricing strategies.
- Operating Profit Margin
- The operating profit margin mirrors the trend in gross profit, exhibiting similar fluctuations. It starts around 12-14% in 2021, declines sharply in September 2021, recovers through 2022 and early 2023, and then experiences a substantial drop in late 2023 and 2024. The operating profit margin is significantly impacted by the large negative value in Non-service FAS pension income (expense) in September 2021 and June 2022, and again in December 2025. This suggests pension-related costs are a significant factor influencing profitability.
- Net Profit Margin
- The net profit margin demonstrates considerable variability, ranging from a high of 11.58% to a low of 1.88%. The margin generally follows the trend of the operating profit margin, but is also influenced by interest expense and income tax expense. The significant drop in net profit margin in late 2023 and 2024 aligns with the decline in operating profit and is further impacted by increased income tax expense. The large negative impact of Non-service FAS pension income (expense) in December 2025 also significantly reduces the net profit margin.
- Expense Management
- Operating costs and expenses consistently represent a substantial portion of revenue, generally between 85% and 90%. A notable spike to 96.29% is observed in December 2022, coinciding with the lowest gross and operating profit margins. This suggests a period of increased cost pressure or decreased operational efficiency. Interest expense remains relatively stable as a percentage of sales, while impairment and other charges are infrequent but can have a noticeable impact when they occur.
- Other Income and Expenses
- Other income (expense), net, and other non-operating income (expense), net, exhibit smaller fluctuations but contribute to the overall profitability picture. Non-service FAS pension income (expense) is a significant factor, with large positive and negative impacts observed in different periods, significantly affecting earnings before income taxes.
Overall, the company’s profitability appears sensitive to fluctuations in operating costs, pension-related expenses, and potentially, external economic factors. The significant variations in margins suggest a need for careful monitoring of cost management and a thorough understanding of the drivers behind these fluctuations.