Lockheed Martin (NYSE:LMT) reported increased third-quarter revenue on Tuesday, benefiting from heightened demand for its military equipment driven by geopolitical tensions.
Ongoing conflict in Ukraine has led to the replenishment of arms and ammunition, including shoulder-fired missiles, artillery, and other weaponry. This has resulted in lucrative Pentagon contracts for U.S. defense companies.
Lockheed’s weapons, such as the guided multiple launch rocket system and Javelin anti-tank missiles, produced in collaboration with defense firm RTX, have played a pivotal role in Ukraine’s war efforts.
Nevertheless, Lockheed continues to grapple with pandemic-related labor and supply chain disruptions in its aeronautics division, which manufactures the advanced fighter jet F-35.
“We are still facing challenges related to a few critical components,” stated Lockheed’s Chief Operating Officer Frank St John in an interview with Reuters. He mentioned items like “processor assemblies, solid rocket motors, castings, and forgings,” though the company has made progress in addressing these issues in the last quarter.
Consequently, the aeronautics unit, which is the largest in terms of size, experienced a 5.2% decline in third-quarter sales.
Last month, the company reduced its F-35 jet delivery target for the full year due to supplier delays but reaffirmed its 2023 financial objectives on Tuesday.
Revenue at the Missiles and Fire Control unit, responsible for manufacturing the High Mobility Artillery Rocket System, reached $2.94 billion, marking a 3.8% increase from the previous year.
Lockheed Martin, headquartered in Bethesda, Maryland, reported a net income of $6.73 per share for the quarter ending on Sept. 24, compared to $6.71 per share in the same period a year ago.
Quarterly net sales demonstrated a growth of approximately 1.78%, reaching $16.88 billion.