A report by consulting firm McAleese & Associates says Lockheed Martin (NYSE: LMT) saw its sales in the second quarter of 2019 rise 8 percent to $14.4B primarily driven by sales growth in the company’s missiles and fires control sector and space segment.
Jim McAleese, founder and principal of McAleese & Associates and a 2019 Wash100 winner, wrote Lockheed’s MFC business covering tactical missiles and hypersonics recorded a 17 percent increase in Q2 profit, while the space business posted a 5 percent profit growth.
Lockheed achieved a record backlog of $137B and saw its Q2 2019 earnings per share grow by 23 percent to $5. The company’s sector operating profit climbed 6 percent to $1.6B during the period.
The company’s space sector is generating an 18 percent Q2 incremental margin on the U.S. Air Force’s GPS III and Advanced Extremely High Frequency satellite programs, according to the report.
McAleese also mentioned the F-35 fighter aircraft program; the U.S. Army’s missile procurement program and its impact on Lockheed’s MFC business; program execution challenges within the rotary and mission systems sector; and hypersonics-related contracts.