What is Lockheed Martin's RMS — favorable profit adjustments?

Lockheed Martin (LMT) reported RMS — favorable profit adjustments of $16.25M in Q4 2023.

What does RMS — favorable profit adjustments mean?

These are positive adjustments to contract profit margins resulting from improved performance, cost savings, or changes in contract scope. They reflect the realization of efficiencies or risk reductions that were not previously anticipated in the contract's baseline estimate. Such adjustments serve as a key driver for segment-level margin expansion.

Lockheed Martin LMT RMS — Favorable profit adjustments

Similar metrics at other companies

FLEXRMS — Operating Income (Loss), Adjusted

$152.75M+21.0%

CRLRMS — Operating Income (Loss)

$49.77M+14.1%

VVXFavorable adjustments to revenue

$2.6M-82.4%

FLEXRMS — Net Sales

$2.55B+5.3%

VVXFavorable adjustments to operating income

-$1.1M-126%

FLEXFRS — Operating Income (Loss), Adjusted

$233M+17.7%

Other financials

Income statement

See full

Revenue$20.1B+10.5%

Gross profit$2.4B+233%

Operating income$2.5B+231%

Net income$1.8B+437%

EPS (diluted)$7.94+444%

Balance sheet

See full

Cash & equivalents$3.8B+193%

Total debt$20.5B-5.1%

Total equity$8.8B+64.4%

Total assets$62.5B+6.1%

Cash flow

See full

Operating cash flow$3.2B+1,509%

CapEx$318.0M-9.4%

Free cash flow$2.9B—

Valuation

See full

Market cap$130.78B+33.2%

Enterprise value$147.52B+24.5%

P/E20.8×-2.6×

P/S1.7×+0.3×

Profitability

See full

Gross margin11.8%+3.6pp

Operating margin11.9%+3.6pp

Net margin8.2%+2.3pp

FCF margin11.3%+6.5pp

Returns & leverage

See full

Return on equity89.2%+16.1pp

Debt / equity2.3×-1.7×

Current ratio1.2×+0.2×

Where this comes from

Reported directly by Lockheed Martin in its filing.

Tagged under the XBRL concept lmt:OperatingProfitFavorableProfitAdjustments.

The official record: Lockheed Martin’s 10-K, filed January 29, 2026, on SEC EDGAR. View the filing →

Ask your AI about Lockheed Martin's rms — favorable profit adjustments.

Connect your AI assistant and compare it to peers, right in your chat.

Connect your AI

Claude

Questions, answered.

What is Lockheed Martin's RMS — favorable profit adjustments?: Lockheed Martin (LMT) reported RMS — favorable profit adjustments of $16.25M in Q4 2023.
What does RMS — favorable profit adjustments mean?: These are positive adjustments to contract profit margins resulting from improved performance, cost savings, or changes in contract scope. They reflect the realization of efficiencies or risk reductions that were not previously anticipated in the contract's baseline estimate. Such adjustments serve as a key driver for segment-level margin expansion.