Operating Profit Margin
since 2005
Calculation
Lockheed Martin Corp., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating profit1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 9.87% | = | 100 | × | 7,013) | ÷ | 71,043) |
| Dec 31, 2023 | 12.59% | = | 100 | × | 8,507) | ÷ | 67,571) |
| Dec 31, 2022 | 12.65% | = | 100 | × | 8,348) | ÷ | 65,984) |
| Dec 31, 2021 | 13.61% | = | 100 | × | 9,123) | ÷ | 67,044) |
| Dec 31, 2020 | 13.22% | = | 100 | × | 8,644) | ÷ | 65,398) |
| Dec 31, 2019 | 14.29% | = | 100 | × | 8,545) | ÷ | 59,812) |
| Dec 31, 2018 | 13.64% | = | 100 | × | 7,334) | ÷ | 53,762) |
| Dec 31, 2017 | 11.60% | = | 100 | × | 5,921) | ÷ | 51,048) |
| Dec 31, 2016 | 11.74% | = | 100 | × | 5,549) | ÷ | 47,248) |
| Dec 31, 2015 | 11.78% | = | 100 | × | 5,436) | ÷ | 46,132) |
| Dec 31, 2014 | 12.26% | = | 100 | × | 5,592) | ÷ | 45,600) |
| Dec 31, 2013 | 9.93% | = | 100 | × | 4,505) | ÷ | 45,358) |
| Dec 31, 2012 | 9.40% | = | 100 | × | 4,434) | ÷ | 47,182) |
| Dec 31, 2011 | 8.56% | = | 100 | × | 3,980) | ÷ | 46,499) |
| Dec 31, 2010 | 8.94% | = | 100 | × | 4,097) | ÷ | 45,803) |
| Dec 31, 2009 | 9.88% | = | 100 | × | 4,466) | ÷ | 45,189) |
| Dec 31, 2008 | 12.01% | = | 100 | × | 5,131) | ÷ | 42,731) |
| Dec 31, 2007 | 10.81% | = | 100 | × | 4,527) | ÷ | 41,862) |
| Dec 31, 2006 | 9.98% | = | 100 | × | 3,953) | ÷ | 39,620) |
| Dec 31, 2005 | 8.02% | = | 100 | × | 2,986) | ÷ | 37,213) |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The financial data reveals several notable trends in operating profit, net sales, and operating profit margin over the reported years. Overall, net sales have exhibited a general upward trajectory, increasing from $37,213 million in 2005 to $71,043 million in 2024. This represents a near doubling in revenue over the two decades, indicating steady growth in the company's sales performance with only minor fluctuations around 2013 and 2022-2023.
Operating profit shows a more variable pattern compared to net sales. It initially rose from $2,986 million in 2005, peaking at $5,921 million in 2017, followed by a continued increase to a high of $9,123 million in 2021. However, starting in 2022, operating profit declined noticeably to $8,348 million and further dropped to $7,013 million by 2024. This decline contrasts with the generally increasing sales figures during the same period, suggesting potential challenges in cost control, pricing pressures, or increased expenses affecting profitability.
The operating profit margin corroborates some of the fluctuations seen in absolute operating profits. Margins improved significantly from 8.02% in 2005 to a peak of 14.29% in 2019, indicating enhanced efficiency or more profitable sales mix during this period. However, after 2019, the margin decreased steadily to 9.87% by 2024. This margin contraction despite rising net sales implies that while the company is growing revenue, the proportion of income converted into operating profit has diminished, possibly due to higher operating costs or less favorable business conditions.
In summary, the company demonstrated robust sales growth and improved profitability margins up until around 2019. Since then, although sales continue to grow, profitability has declined as reflected in both reduced operating profits and narrower operating margins. This divergence suggests emerging operational challenges that may require management's attention to restore prior profitability levels.
Comparison to Competitors
Lockheed Martin Corp., operating profit margin, long-term trends, comparison to competitors
| Lockheed Martin Corp. | Boeing Co. | Caterpillar Inc. | RTX Corp. | |
|---|---|---|---|---|
| Dec 31, 2024 | 9.87% | -16.10% | 21.30% | 8.10% |
| Dec 31, 2023 | 12.59% | -0.99% | 20.30% | 5.17% |
| Dec 31, 2022 | 12.65% | -5.33% | 13.97% | 8.07% |
| Dec 31, 2021 | 13.61% | -4.66% | 14.27% | 7.70% |
| Dec 31, 2020 | 13.22% | -21.95% | 11.67% | -3.34% |
| Dec 31, 2019 | 14.29% | -2.58% | 16.33% | 11.64% |
| Dec 31, 2018 | 13.64% | 11.85% | 16.00% | 12.86% |
| Dec 31, 2017 | 11.60% | 11.01% | 10.32% | 14.49% |
| Dec 31, 2016 | 11.74% | 6.17% | 1.39% | 14.28% |
| Dec 31, 2015 | 11.78% | 7.74% | 7.38% | 13.00% |
| Dec 31, 2014 | 12.26% | 8.23% | 10.22% | 15.01% |
| Dec 31, 2013 | 9.93% | 7.58% | 10.68% | 14.70% |
| Dec 31, 2012 | 9.40% | 7.72% | 13.59% | 13.32% |
| Dec 31, 2011 | 8.56% | 8.50% | 12.46% | 13.92% |
| Dec 31, 2010 | 8.94% | 7.73% | 9.94% | 13.23% |
| Dec 31, 2009 | 9.88% | 3.07% | 1.95% | 12.33% |
| Dec 31, 2008 | 12.01% | 6.49% | 9.26% | 13.14% |
| Dec 31, 2007 | 10.81% | 8.78% | 11.73% | 13.08% |
| Dec 31, 2006 | 9.98% | 4.90% | 12.66% | 12.94% |
| Dec 31, 2005 | 8.02% | 5.13% | 11.13% | 12.26% |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).