EL7.AI
StocksMedium•22 October 2026•
3 min read

Lockheed Martin Sales Rise 11% as Fighter Production Contract Talks Continue

Key Facts

1Lockheed Martin sales rose 11% to $20.7 billion in the third quarter of 2026.
2Backlog reached a record $292.0 billion at the end of the third quarter of 2026.
3Fighter deliveries in the first nine months of 2026 fell to 94 from 143 in the corresponding period of 2025.
4The Government Accountability Office estimated additional spending for the sustainment and readiness improvement plan at about $13.7 billion through fiscal year 2031.
5Lockheed Martin said it was still negotiating production contracts with the U.S. government.

Lockheed Martin reported an 11% year-on-year increase in sales in the third quarter of 2026 as it continued negotiating production contracts with the U.S. government. The company said in its earnings statement released on October 22, 2026, that sales for the period totaled $20.7 billion. Its backlog reached a record $292.0 billion at the end of the third quarter. On production contracts, the company said it was "still negotiating with the U.S. government." The talks cover production contracts for lots 20 and beyond of the F-35 fighter program. Lockheed Martin warned of future adverse effects on its results and cash flows if it does not secure additional contractual authorization and funding.

The company's results showed a decline in fighter deliveries during the third quarter and over the first nine months of the year. Lockheed Martin delivered 43 fighters in the third quarter of 2026. That compared with 46 fighters in the third quarter of 2025, according to the earnings statement. Cumulative deliveries in the first nine months of 2026 totaled 94 fighters. The company delivered 143 fighters in the corresponding period of 2025. The decline follows a year in which the company recorded its highest annual deliveries, reporting 191 fighters delivered in 2025, surpassing the previous record of 142 aircraft.

Against the backdrop of the ongoing production talks, Lockheed Martin outlined its previous agreement covering fighter lots 18 and 19. The company said that agreement covered the production and delivery of up to 296 fighters, valued at $24 billion. On engines, RTX announced in March 2026 that the total value of the contract awarded to Pratt & Whitney for the same lots was $6.6 billion. Alongside the production contracts, the U.S. Government Accountability Office estimated that the plan to improve fighter sustainment and readiness would require about $13.7 billion in additional spending. The additional spending estimate extends through fiscal year 2031, compared with previous plans. The office said risks to implementing the readiness improvement plan included continued industrial capacity constraints affecting the supply of key spare parts. It said in its report that "production capacity constraints persist for key parts."

On the earnings calendar, Lockheed Martin announced a conference call to discuss its financial performance on October 22, 2026. The company scheduled the call to start at 8:30 a.m. U.S. Eastern Time for management updates and investor questions. On fighter development, program management plans to select a solution for upgrading the power and thermal management system in December 2026, according to the U.S. Government Accountability Office report. Program management intends to begin upgrade design work after selecting that solution. The planned schedule links the start of design efforts to completion of the selection scheduled for December as part of the system upgrade.