Lockheed Martin Reports Earnings Decline but Backlog Reaches Record $176 Billion

The defense contractor faces profit pressures from F-35 delays and classified program losses while focusing on AI and digital technology investments.

Lockheed Martin's 2024 net sales rose to $71 billion, driven by growth in Aeronautics, Missiles and Fire Control, and Rotary and Mission Systems segments.
Net earnings for 2024 fell to $5.3 billion from $6.9 billion in 2023, with operating profit impacted by cost increases and lower profit booking rate adjustments.
The company's backlog grew to a record $176 billion, fueled by new orders in Aeronautics and Missiles and Fire Control segments.
Lockheed Martin's 2025 profit forecast of $27 to $27.30 per share falls below Wall Street expectations, citing delays in F-35 technology upgrades and pandemic-related supply chain challenges.
The company is prioritizing advancements in AI and machine learning to enhance defense capabilities while navigating geopolitical and economic pressures.