Lockheed Martin Space Segment Leads Company in Growth in 2023 

Lockheed Martin headquarters in Bethesda, Md. Photo: Lockheed Martin

Lockheed Martin’s Space segment had a strong 2023, leading the company in growth with a 9% sales increase year-over-year. Strategic and missile defense programs and national security space programs led the growth. However, United Launch Alliance reported 80% lower equity earnings compared to 2022. 

The Space segment posted net sales of $12.6 billion in 2023, an increase of $1.1 billion compared to 2022. Lockheed reported higher net sales of $620 million for strategic and missile defense programs due to ramp up in the Next Generation Interceptor (NGI) development program and higher volume in the Fleet Ballistic Missile (FBM) program. 

Space also saw higher net sales of $225 million for national security space programs with ramp up on Transport Layer and classified programs. Lockheed has won a number of contracts from the Space Development Agency (SDA) for the Proliferated Warfighter Space Architecture (PWSA). 

The company delivered 10 satellites for Tranche 0 Transport Layer in 2023, which launched in September. Lockheed is building 42 satellites for the Tranche 1 Transport Layer; 72 satellites for the Tranche 2 Transport Layer – Beta; and recently won a contract to build 18 satellites for the Tranche 2, Tracking Layer. 

Backlog for the Space segment was $30.5 billion at the end of 2023, up $772 million over the prior year-end. 

ULA, a joint venture between Lockheed Martin and Boeing, reported $20 million in equity earnings for Lockheed Martin in 2023 — compared to $100 million in 2022. ULA had a lower launch volume this past year — three missions in 2023 compared to eight in 2022. 

Lockheed also reported an increase in new product development costs at ULA, which saw the first launch of the new Vulcan Centaur rocket this month. 

Space’s operating profit increased $101 million, or 10%, compared to 2022. Lockheed reported higher net favorable profit adjustments in classified programs. ULA equity earnings accounted for 2% of Space’s operating profit, compared to approximately 9% in 2022.

Overall, Lockheed reported net sales in 2023 of $67.6 billion, 2% growth year-over-year. 

Net earnings in 2023 were $6.9 billion, or $27.55 per share, compared to $5.7 billion, or $21.66 per share, in 2022. Backlog reached a record $160.6 billion. 

Looking ahead to 2024, Lockheed Martin provided guidance expecting 2023 sales between $68.5 billion and $70 billion, representing 2.5% growth at the midpoint. The company expects the Missiles and Fire Control to lead growth. 

“Looking ahead to 2024 and beyond, our opportunities to support global security for the U.S. government and its allies remain robust with traditional and breakthrough technologies. Our team will continue to realize the vision for 21st Century Security integrated platforms and systems, working with industry and commercial partners to pioneer and mature deterrence solutions for customers worldwide,” commented Lockheed Martin Chairman, President and CEO Jim Taiclet.