Lockheed Martin Space Segment Sees Double-Digit Sales Boost in Q2
Sales at Lockheed Martin’s Space division rose 10% in the second quarter of 2021 compared to the same time last year. According to the company’s Q2 2021 results reported on Monday, the Space segment had 3.2 billion in net sales, up $300 million from Q2 in 2020.
Although Space is Lockheed Martin’s smallest segment in terms of sales, it had the largest growth in Q2 sales compared to 2020. All segments reported an increase in sales, and overall Lockheed Martin reported $17 billion in net sales for the quarter, a 5% increase over Q2 in 2020. Net earnings were $1.8 billion, or $6.52 per share, compared to $1.6 billion, or $5.79 per share, in the second quarter of 2020.
The company attributed the increase to $125 million of increase in Space sales to higher volume for the Atomic Weapons Establishment (AWE) program; about $100 million in higher volume for national security space programs, primarily Next Generation Overhead Persistent Infrared (Next Gen OPIR); and about $80 million in higher volume for strategic and missile defense programs primarily in hypersonic development programs.
Space’s operating profit during the second quarter of 2021 increased $83 million, or 33%, compared to the same period in 2020. Space backlog sood at $26.8 billion as of June 27, up from $25.1 billion on Dec. 31, 2020.
Equity earnings for United Launch Alliance (ULA), a joint venture between Lockheed Martin and Boeing, were approximately $45 million, or 13% of Space’s operating profit during the second quarter of 2021. This is up from approximately $10 million, or 4% in the second quarter of 2020.
“Our teams continue to deliver on key platform programs while also advancing technologies critical for 21st century deterrence and scientific discovery. And as a result, we are maintaining our prior guidance for full-year sales, segment operating profit, and cash from operations, while raising guidance for full-year EPS,” commented Lockheed Martin Chairman, President and CEO James Taiclet.
The company raised guidance for 2021 diluted earnings per share to $26.70 to $27.00, up from $26.40 to $26.70 in its April 2021 outlook.