Sign in Subscribe
Information technology services industry

Lockheed Martin's 2021 Financial Performance and Outlook for 2022

Strategic Insights

— 2 min read

Lockheed Martin's 2021 financial performance was marked by a strong focus on program execution, improving the quality and predictability of product and service delivery, and investing in innovative technologies to address evolving mission requirements. In 2021, 71% of the company's $67.0 billion in net sales came from the U.S. Government, primarily through the Department of Defense. Despite the challenges posed by the COVID-19 pandemic, the company continued to adapt and respond, prioritizing employee health and safety, working with customers and suppliers to minimize disruptions, and accelerating payments to suppliers. Looking ahead to 2022, Lockheed Martin expects a 2% decline in net sales due to declines in three of its four business areas, but projects a total business segment operating margin of 10.9% and cash from operations of $7.9 billion or more.

Key Takeaways:

  • Lockheed Martin generated $67.0 billion in net sales in 2021, with 71% coming from the U.S. Government and 62% from the Department of Defense.
  • The company operates in four business segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS), and Space, with a focus on defense, space, intelligence, homeland security, and information technology.
  • Lockheed Martin has prioritized program execution, improving the quality and predictability of product and service delivery, and investing in innovative technologies to address evolving mission requirements.
  • The COVID-19 pandemic has presented challenges for the company, including increased costs, delays, and workforce attrition, but has also accelerated the adoption of digital technologies and increased investment in employee health and safety.
  • In 2022, Lockheed Martin expects a 2% decline in net sales due to declines in three of its four business areas, but projects a business segment operating margin of 10.9% and cash from operations of $7.9 billion or more.
  • The company has taken steps to comply with the federal contractor vaccine mandate, with over 96% of its U.S. employee population vaccinated or receiving an approved exception.
  • The ultimate impact of COVID-19 on Lockheed Martin's operations and financial performance remains uncertain and will depend on future pandemic-related developments.

Statistics:

  • $67.0 billion in net sales for 2021
  • 71% of net sales came from the U.S. Government
  • 62% of net sales came from the Department of Defense
  • 28% of net sales came from international customers
  • 1% of net sales came from U.S. commercial and other customers
  • 96% of U.S. employee population vaccinated or receiving an approved exception
  • 2% decline in net sales expected for 2022
  • Business segment operating margin of 10.9% expected for 2022
  • Cash from operations of $7.9 billion or more expected for 2022

Sources:

  • Lockheed Martin's Form 10-K for the fiscal year ended December 31, 2021
  • "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Lockheed Martin's Form 10-K for the fiscal year ended December 31, 2021

Read more