10-Year Framework Targets 850 F-35 Fighters; Javelin Contract Worth $215 Million
Key Facts
The U.S. Department of Defense and Lockheed Martin agreed on a 10-year production framework covering 850 F-35 aircraft for the United States, while the U.S. Army awarded the joint venture between RTX’s Raytheon and Lockheed a $215 million contract to produce new lightweight launch units for Javelin missiles. The aircraft framework is not a final purchase contract; turning it into a contract requires congressional approval of multiyear authorization and funding appropriations. The framework averages 85 U.S. aircraft annually, matching the Pentagon’s request for fiscal year 2027. By contrast, Congress funded only 47 aircraft in fiscal year 2026. Lockheed said it would self-fund at least $7 billion in initiatives supporting the program.
The Javelin contract covers lightweight launch units, not production of the missiles themselves, according to RTX’s announcement on October 19. The new unit will replace the older launch unit and is part of a reusable system. RTX said the contract followed the joint venture’s delivery of its first lightweight launch units to the Army 5 months earlier. It added that the venture has produced more than 55,000 Javelin missiles and more than 12,000 reusable launch units to date. The venture combines RTX subsidiary Raytheon and Lockheed Martin, according to the company statement.
The announcements come as Lockheed’s third-quarter 2026 results showed sales rising $2.1 billion, or 11% compared with the same quarter a year earlier. The company said growth spanned its four business segments and that segment operating profit increased $200 million. The Missiles and Fire Control segment posted the largest specified increase, with sales up $877 million, or 24%, year over year. The company attributed most of the segment’s increase to growth in its integrated air and missile defense programs, which added $480 million, and tactical and strike missile programs, which added $330 million. Lockheed linked the increase to rising production in Patriot-3, THAAD, and tactical and strike missile programs.
Lockheed raised its fiscal 2026 sales guidance range to $80–82 billion, from $79.75–81.75 billion in its July update. It also set guidance for diluted earnings per share at $30.35–$30.75 and free cash flow at $7.8–$8.0 billion. The company did not attribute the sales guidance revision solely to the Javelin contract or defense demand. At the segment level, RTX reported quarterly sales of $25 billion, up 11% from a year earlier. It said its backlog reached $340 billion after it secured more than $81 billion in new commercial and defense awards.
RTX, in turn, raised its adjusted 2026 sales outlook to $97–97.5 billion, compared with a previous range of $95–96 billion. The company’s chief executive said demand was strong and new contracts had pushed backlog to a record level. The two companies’ results highlight sales and production growth, while the F-35 framework remains contingent on funding arrangements and legislative authorization. Readiness data cited by the Government Accountability Office also showed the share of the F-35 fleet capable of performing at least one mission falling from 67% in fiscal year 2021 to 44% in fiscal year 2025. The share of time the aircraft could perform all missions fell from 38% to 25% over the same period.
Lockheed said it is still negotiating with the U.S. government on contracts to produce F-35 lots beginning with Lot 20 and beyond. The company warned that the absence of additional contracting authority and funding could adversely affect its results, cash flows, and financial position in subsequent periods. The long-term production framework therefore remains separate from the contracts that provide funding for the lots. On economic data, the U.S. Census Bureau lists October 27, 2026, at 8:30 a.m. as the scheduled release time for the advance report on September durable goods. The full report is scheduled for release on November 3 at 10:00 a.m.