Lockheed Martin cites COVID and Supply Chain Issues for First-Quarter Losses

The company remains optimistic that it will beat its full-year outlook.

Michael Wildes

Tuesday, April 19, 2022 at 05:13 PM ET

Verified

Lockheed Marton generated $1.1 billion in free cash flow during the first quarter of 2022. [File Photo: Adobe Stock]

Key Takeaways:

Lockheed Martin's Q1 earnings and sales fell short of analyst estimates due to ongoing COVID constraints, supply-chain shortages, and geopolitical events.
Despite the overall financial dip, the F-35 fighter jet program saw strong sales and increased deliveries, with significant future orders anticipated from Germany, Canada, and Saudi Arabia.
The company maintains an optimistic full-year outlook, expecting global events to drive increased defense spending and planning to recoup Q1 losses throughout 2022.

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Defense company Lockheed Martin (NYSE: LMT) reported its first-quarter earnings Tuesday, announcing that ongoing COVID constraints, supply-chain shortages, and geopolitical events caused sales across its businesses to fall short of estimates.

The company reported that net earnings fell to $1.73 billion from $1.84 billion in the first quarter of 2021. Q1 sales of $14.96 billion were lower than the $15.58 billion analysts expected.