Lockheed Martin (LMT) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

July 18, 2023 11:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning everyone and welcome everyone to the Lockheed Martin Second Quarter 2023 Earnings Results Conference Call. Today’s call is being recorded.

At this time, for opening remarks and introductions, I would now like to turn the call over to Maria Ricciardone Lee, Vice President of Investor Relations. Please go ahead.

Maria Ricciardone Lee

Thank you, Lois, and good morning. I’d like to welcome everyone to our second quarter 2023 earnings conference call. Joining me today on the call are Jim Taiclet, our Chairman, President and Chief Executive Officer; and Jay Malave, our Chief Financial Officer.

Statements made in today’s call that are not historical fact are considered forward-looking statements and are made pursuant to the safe harbor provisions of federal securities laws. Actual results may differ materially from those projected in the forward-looking statements. Please see today’s press release and our SEC filings for a description of some of the factors that may cause actual results to differ materially from those in the forward-looking statements.

We have posted charts on our website today that we plan to address during the call to supplement our comments. These charts also include information regarding non-GAAP measures that may be used in today’s call. Please access our website at www.lockheedmartin.com and click on the Investor Relations link to view and follow the charts.

With that, I’d like to turn the call over to Jim.

Jim Taiclet

Thanks, Maria. Good morning, everyone, and thank you for joining us on our second quarter 2023 earnings call. I’d begin today with a few key strategic and operational highlights and then Jay will discuss our quarterly financial results and full-year 2023 outlook.

Starting on page 3 of this slide our Q2 financial results were strong, with sales of $16.7 billion up 8% year-over-year and double-digit growth at both aeronautics and space. Backlog reached a record level of $158 billion, up $8 billion from year-end resulting from a book-to-bill of $1.7 in the quarter.

Orders included an approximately $8 billion option of [Indiscernible] for the 126 F-35 for production lot 17 as well as significant awards to ramp up emissions [Ph] at MSC. This highest ever backlog gives us visibility into multiyear sales of our key programs and enables our suppliers to be better positioned to meet growing demand. Segment operating profit of $1.9 million in the quarter reflected an operating margin of 11.1%.