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

Sales at Lockheed Martin’s Space segment were slightly down in the third quarter of 2021, as the full company reported a dip in sales as well. 

Lockheed Martin reported a $147 million, or 5% decrease in Space sales to lower net sales of $340 million due to the renationalization of the Atomic Weapons Establishment (AWE) program by the UK Ministry of Defence. This program will no longer be included in the company’s financial results. 

This was partially offset by higher sales of about $140 million for strategic and missile defense programs including hypersonic development, Fleet Ballistic Missile (FBM) and Next Generation Interceptor (NGI) programs. It was also partially offset by $70 million for national security space programs.

Space’s operating profit during the third quarter of 2021 increased $16 million, or 6%, compared to the same period in 2020.  

Equity earnings for United Launch Alliance (ULA), a joint venture between Lockheed Martin and Boeing, were “not significant” during the third quarters of 2021 and 2020, the company said. 

Space is Lockheed Martin’s smallest segment, but each segment saw a sales dip in Q3. Third quarter net sales were $16 billion, compared to $16.5 billion in the third quarter of 2020.

Lockheed Martin revised its financial guidance for 2022, expecting $67 billion in net sales for 2022, compared to the August guidance of sales between $67.3 billion – $68.7 billion. This guidance does not incorporate Lockheed Martin’s pending acquisition of Aerojet Rocketdyne, which it said could materially change the 2022 estimate. 

“We have recently undertaken a reassessment of our five-year business plan given recent external and programmatic events,” Chairman, President and CEO James Taiclet said in Tuesday’s announcement. “Our conclusions … reflect continuing strong cash flow generation, but a slight reduction in revenue in 2022 and roughly flat to low-single-digit growth rates in both revenue and segment operating profit over the next few years, with increasing growth opportunities in the years that follow.”