Lockheed Martin Corp. (NYSE:LMT)

The data reveals several notable trends in the financial performance over the five-year period from 2020 to 2024. Overall net sales demonstrated a generally upward trajectory, rising from US$65,398 million in 2020 to US$71,043 million in 2024, with a minor dip in 2022. This growth was primarily driven by increases in the products segment, which showed a rise from US$54,928 million in 2020 to US$59,277 million in 2024, despite some fluctuations between years. The services segment also increased steadily, from US$10,470 million in 2020 to US$11,766 million in 2024.

Cost of sales increased over the period, moving from approximately US$56,744 million in 2020 to US$64,113 million in 2024, reflecting the overall increase in sales volumes. Breakdown of costs reveals that costs attributed to products and services rose consistently, with a more pronounced increase in product-related costs by 2024, consistent with higher product sales. Impairment and severance charges fluctuated, peaking in 2022 and then gradually declining by 2024.

Gross profit experienced variability, initially increasing from US$8,654 million in 2020 to US$9,061 million in 2021, then declining to US$6,930 million by 2024. This decline in gross profit despite growing sales suggests increased cost pressures or margin compression. Operating profit followed a similar pattern, reaching a high in 2021 before tapering off toward 2024, concluding at US$7,013 million.

Non-operating items showed volatility across the years. Interest expense notably increased, rising from US$591 million in 2020 to US$1,036 million in 2024, indicating higher borrowing costs or debt levels. The non-service FAS pension income and other non-operating income had significant fluctuations, with a pronounced negative impact in 2021 and 2022, followed by partial recovery in subsequent years.

Earnings before income taxes decreased from US$8,235 million in 2020 to US$6,220 million in 2024, reflecting the combined effect of operating and non-operating income trends. Income tax expense displayed some variability but generally remained lower than earnings, contributing to a reduction in net earnings from continuing operations over the period. Net earnings declined from US$6,883 million in 2020 to US$5,336 million in 2024, evidencing the combined pressures of increased costs and variable non-operating results. The absence of net loss from discontinued operations after 2020 indicates no significant discontinued business segments impacting recent earnings.

Net Sales

Overall growth with slight fluctuations; driven mainly by increasing product sales and steady service revenues.

Cost of Sales

Rising in line with sales growth, with increasing costs related to products outperforming services.

Gross Profit and Operating Profit

Both peaked around 2021, followed by a downward trend suggesting margin pressures and higher operating costs.

Non-operating Expenses

Interest expense steadily increased, adding financial burden. Pension-related and other non-operating income showed marked volatility impacting overall profitability.

Net Earnings

Declining overall, reflecting the compound effect of rising costs, fluctuating non-operating items, and increased interest expenses, despite growing revenues.