Lockheed Martin and Pentagon Announce Framework for 850 U.S. Fighter Jets Over 10 Years
Key Facts
Lockheed Martin and the Pentagon announced on 22 October 2026 a production and sustainment framework covering 850 F-35 fighter jets for the United States over 10 years, according to a company statement. The arrangement includes initial spare parts for the U.S. aircraft alongside its fighter production and sustainment scope. The framework spans production lots 21–30 and also includes orders from international customers in the fighter program. Lockheed Martin said the arrangement provides for production to continue at "156 aircraft annually," the program rate combining U.S. and international demand. The framework thus sets out the scope of U.S. aircraft deliveries over a full decade and an annual production rate serving both the United States and international customers.
In the company's third-quarter results, its backlog reached a record $292.0 billion, according to its financial statement. That balance includes $52.5 billion tied to the multiyear contract to produce Patriot PAC-3 MSE interceptor missiles, placing the missile contract among the group's outstanding orders. Diluted earnings per share for the third quarter were $7.97, according to the same results. Lockheed Martin recorded cash flow from operations of $3.4 billion during the quarter. Free cash flow totaled $3.0 billion in the same quarter, alongside the earnings and orders reported in the company's disclosure.
On execution of the fighter program, Lockheed Martin delivered 191 F-35 aircraft in 2025, exceeding the previous annual record of 142 aircraft, according to the company's announcement of its annual total. That followed deliveries of 110 aircraft of the same type in 2024, all of which were late, according to a U.S. Government Accountability Office review of the program. Delivery delays averaged 238 days in 2024, compared with 61 days in 2023, according to the office. The review identified the hardware and software upgrade known as "Technology Refresh 3" as the main cause of fighter delivery delays in 2024, an upgrade that supports the development of "Block 4" capabilities. In its assessment of that development, the office said the package's cost exceeded original estimates by more than $6 billion. It added that completion had slipped by at least 5 years from original estimates. Its findings also covered delivery incentives, which it found allowed the contractor to "deliver aircraft up to 60 days late while still receiving a portion of the incentive" under the contracts reviewed in the study.
In its outlook for the current fiscal year, Lockheed Martin raised its expected sales range to approximately $80,000–82,000 million, according to its third-quarter results statement. It also raised its annual diluted earnings per share forecast range to approximately $30.35–30.75, alongside the sales revision. The improved outlook also covered annual free cash flow, which the company now expects to reach approximately $7,800–8,000 million. In the same statement, Lockheed Martin warned of a future adverse impact on its operating results if it did not receive additional contractual authorization and funding for production. It said the consequences of failing to secure authorization and funding would also extend to cash flows and its financial position.
Lockheed Martin scheduled its third-quarter earnings call for 22 October 2026 at 8:30 a.m. U.S. Eastern time. The company made the transition from the fighter framework to a formal contract award conditional on "the granting of multiyear contracting authority and associated appropriations." Once that condition is met, the Joint Program Office and the company will finalize the contract's terms, pricing and schedules, according to the process outlined in the announcement. For its announced cash dividends, the company set the close of business on 1 December 2026 as the record date for eligible shareholders. The dividends are scheduled to be paid on 31 December 2026, according to Lockheed Martin's dividend announcement.