Lockheed Martin Corp. (NYSE:LMT)

Over the period examined, sales demonstrate a generally positive trajectory, albeit with some fluctuations. Beginning at US$37.213 billion in 2005, sales increased to US$42.731 billion by 2008. A slight dip occurred in 2009 to US$45.189 billion, followed by a period of moderate growth through 2012, reaching US$47.182 billion. Sales experienced a decrease in 2013 to US$45.358 billion before resuming growth, accelerating significantly from 2015 onwards. The most substantial increase occurred between 2018 and 2020, with sales rising from US$53.762 billion to US$65.398 billion. A slight decrease was observed in 2022, followed by a rebound in 2023 and continued growth into 2025, reaching US$75.048 billion.

Operating Profit Trend

Operating profit exhibited a more volatile pattern than sales. It increased from US$2.986 billion in 2005 to a peak of US$5.131 billion in 2008. A notable decline occurred in 2009 to US$4.466 billion, and operating profit remained relatively stable between approximately US$3.980 billion and US$5.592 billion from 2010 to 2014. A significant surge occurred in 2015, reaching US$5.302 billion, followed by a substantial drop in 2017 to US$2.002 billion. Operating profit then rebounded strongly in 2018, reaching US$7.334 billion, and continued to grow through 2021, peaking at US$9.123 billion. A decrease was observed in 2022, and this downward trend continued into 2025, with operating profit at US$7.731 billion.

Net Earnings Trend

Net earnings generally followed the trend of operating profit, though with some differences in magnitude. Starting at US$1.825 billion in 2005, net earnings increased to US$3.217 billion by 2008. A decrease was seen in 2009 to US$3.024 billion, followed by a period of relative stability. Net earnings experienced a significant increase in 2015 to US$5.302 billion, but then fell dramatically in 2017 to US$2.002 billion. A strong recovery occurred in 2018, with net earnings reaching US$5.046 billion, and continued growth through 2019, peaking at US$6.833 billion in 2020. Net earnings decreased in 2021 and 2022, and continued to decline through 2025, reaching US$5.017 billion.

The period between 2017 and 2020 represents a period of significant growth in both sales and profitability. However, the more recent years (2021-2025) show a moderation of this growth, with a noticeable decline in operating profit and net earnings despite continued sales increases. This suggests potential pressures on margins, possibly due to increased costs or competitive pricing. The substantial fluctuations in operating profit and net earnings, particularly the dip in 2017 and the subsequent recovery, warrant further investigation to understand the underlying drivers of these changes.

Over the period examined, both current assets and total assets demonstrate a general upward trajectory, though with notable fluctuations. Initial values in 2005 establish a baseline for subsequent growth and shifts in the company’s asset structure.

Current Assets Trend

Current assets experienced a slight decrease from 2005 to 2006, followed by a period of moderate growth through 2009. A significant increase is observed between 2009 and 2011, continuing into 2015. Following 2015, current assets decreased slightly in 2016 before resuming an upward trend, reaching a peak in 2021. A minor decrease occurred in 2022, followed by further increases in 2023, 2024, and 2025, indicating a consistent strengthening of short-term asset holdings in recent years.

Total Assets Trend

Total assets exhibited a steady increase from 2005 to 2008. A substantial jump occurred between 2008 and 2009, followed by a relatively stable period through 2011. A significant expansion in total assets is evident between 2011 and 2015, likely reflecting substantial investments or acquisitions. A decrease is noted in 2016, followed by a period of fluctuation and overall growth through 2025. The most substantial increase in total assets occurred between 2020 and 2025, suggesting accelerated asset accumulation in the latter part of the period.

Relationship Between Current and Total Assets

The proportion of current assets to total assets appears relatively stable over the period, generally ranging between 36% and 45%. This suggests that while both asset categories are growing, the company maintains a consistent balance between its short-term and long-term asset composition. The ratio does show a slight increase towards the end of the period, indicating a potentially greater reliance on liquid assets.

Notable Periods of Change

The period between 2008 and 2011 represents a period of significant asset growth for both current and total assets. The years 2015 and 2020 also show substantial increases, potentially linked to specific strategic initiatives or market conditions. The slight dip in total assets in 2016 warrants further investigation to understand the underlying causes.

In summary, the asset base of the company has generally expanded over the examined timeframe. While fluctuations exist, the overall trend indicates a strengthening financial position, with a consistent proportion maintained between current and total assets.

An examination of the balance sheet information reveals notable shifts in the company’s liabilities and stockholders’ equity between 2005 and 2025. Current liabilities generally increased over the period, exhibiting fluctuations but ultimately reaching a high of 23,335 million in 2025. Total liabilities demonstrate a more complex pattern, with a significant increase between 2007 and 2015, followed by a period of relative stabilization and then a renewed increase towards the end of the analyzed timeframe. Long-term debt, net, experienced considerable volatility, peaking in 2015 before declining and then increasing again in recent years. Stockholders’ equity experienced substantial swings, including a period of negative equity in 2017, before recovering and stabilizing in later years.

Current Liabilities

Current liabilities showed a consistent upward trend from 2005 to 2012, increasing from 9,428 million to 12,155 million. A decrease was observed in 2013, but the figure rebounded and continued to rise, reaching 19,420 million in 2023 and 23,335 million in 2025. This suggests a growing reliance on short-term financing or an increase in operational obligations.

Total Liabilities

Total liabilities were not reported for 2005 and 2006. From 2008 onwards, a substantial increase is evident, rising from 30,574 million to 46,031 million by 2015. Following 2015, total liabilities decreased slightly before increasing again, reaching 49,284 million in 2023 and 53,119 million in 2025. This pattern indicates periods of increased borrowing and financial leverage, followed by attempts at deleveraging, and then renewed borrowing.

Long-Term Debt, Net

Long-term debt, net, decreased from 4,784 million in 2005 to 3,563 million in 2008. It then increased to 6,460 million in 2011, before decreasing again. A significant surge occurred between 2014 and 2015, reaching 14,305 million. Subsequently, it declined to 12,169 million in 2018, then increased to 20,270 million in 2023 and 21,700 million in 2025. This suggests strategic debt issuance and repayment cycles, potentially linked to major projects or acquisitions.

Stockholders’ Equity (Deficit)

Stockholders’ equity began at 7,867 million in 2005 and experienced fluctuations over the period. A notable decline occurred between 2006 and 2009, reaching 4,129 million. Equity then decreased significantly, falling to a deficit of -683 million in 2017. A recovery began in 2018, with equity reaching 6,015 million in 2020 and 10,959 million in 2021. However, it decreased to 6,333 million in 2025. The period of negative equity in 2017 is a significant observation, indicating a period where liabilities exceeded assets.

Overall, the balance sheet demonstrates a dynamic financial structure. The company has navigated periods of increased debt, negative equity, and subsequent recovery. The increasing trend in current liabilities and total liabilities in the later years of the period warrants further investigation to assess the company’s short-term and long-term financial health and sustainability.

Over the period examined, the company demonstrates fluctuating cash flow patterns across operating, investing, and financing activities. A general observation is the significant variability year-to-year, particularly in financing activities.

Operating Activities

Net cash provided by operating activities generally increased from 2005 to 2008, peaking at US$4,421 million. A substantial decrease occurred in 2009 to US$3,173 million, followed by recovery and further growth through 2011. A sharp decline was then observed in 2012 to US$1,561 million, before rebounding strongly to US$4,546 million in 2013. Operating cash flow continued to fluctuate, reaching a high of US$9,221 million in 2021 before decreasing to US$7,802 million in 2022 and US$7,920 million in 2023. The most recent year, 2024, shows an increase to US$8,557 million. Overall, operating cash flow demonstrates a long-term upward trend, despite considerable annual volatility.

Investing Activities

Net cash used for investing activities consistently represents a cash outflow throughout the period. The outflow increased significantly from 2005 to 2006, and remained substantial through 2008. A period of relatively lower outflow occurred between 2010 and 2013. However, 2014 witnessed a dramatic increase in cash used for investing, reaching US$9,734 million, likely due to a major acquisition or investment. Outflows decreased in subsequent years but remained consistently negative. The most recent years, 2022, 2023 and 2024 show outflows of approximately US$1.7 to US$2.0 billion annually. This suggests ongoing investment in the business, though at a more moderate level than observed in 2014.

Financing Activities

Net cash provided by (used for) financing activities exhibits the most pronounced fluctuations. From 2005 to 2009, the company consistently used cash for financing, with outflows peaking in 2008 at US$3,938 million. A significant shift occurred in 2015, with a substantial inflow of US$4,277 million, likely driven by debt issuance or equity offerings. However, this was followed by renewed outflows in subsequent years, with particularly large outflows in 2018, 2019, and 2021. The period from 2018 to 2021 shows consistently negative cash flow from financing, exceeding US$7 billion in 2021. Outflows continued in 2022, 2023 and 2024, though at a slightly reduced level compared to 2021.

The interplay between these three activities suggests a dynamic capital allocation strategy. Periods of strong operating cash flow are often accompanied by increased investment and, at times, significant financing activities, potentially related to debt management, share repurchases, or dividend payments. The large outflow in investing activities in 2014 and the subsequent financing activities suggest a major strategic shift in capital deployment during that period.

Over the period examined, per share earnings exhibited a generally positive trajectory, though not without fluctuations. Basic earnings per share increased from $4.15 in 2005 to $27.65 in 2022 before decreasing to $21.56 in 2025. Diluted earnings per share followed a similar pattern, rising from $4.10 in 2005 to $27.55 in 2022 and subsequently declining to $21.49 in 2025. Dividend per share demonstrated consistent growth throughout the period, increasing from $1.05 in 2005 to $13.35 in 2025.

Earnings Per Share (EPS)

From 2005 to 2008, both basic and diluted EPS showed steady growth. A slight dip occurred in 2009, followed by a period of moderate growth through 2011. A more substantial increase was observed between 2011 and 2019, with both metrics nearly tripling. The years 2017 and 2018 saw particularly strong performance. However, 2017 experienced a significant decrease in basic EPS, followed by a rebound in 2018. From 2020 to 2022, EPS continued to rise, reaching its peak in 2022. A noticeable decline in both basic and diluted EPS occurred in the subsequent three years, 2022-2025.

Dividend Per Share

Dividend per share consistently increased throughout the examined period. The rate of increase accelerated from 2009 onwards, with larger annual increments compared to the earlier years. This suggests a growing commitment to returning value to shareholders. The growth appears relatively stable, without any significant reversals or plateaus.

Relationship between EPS and Dividends

The dividend payout ratio, while not explicitly calculated, appears to have remained relatively stable over time. While dividends increased consistently, EPS growth generally supported these increases, particularly during the period of rapid EPS expansion from 2011 to 2019. The recent decline in EPS from 2022 to 2025 may warrant further investigation regarding the sustainability of the dividend level.

In summary, the company demonstrated strong earnings growth for much of the period, coupled with a consistent and increasing dividend payout. The recent decline in earnings per share, however, represents a potential area of concern and warrants further analysis to understand the underlying drivers and potential implications for future performance.