Washington, May 16 - Lockheed Martin, the leading U.S. defense contractor, has announced that it now expects to finalize a contract for the next two production batches of its F-35 Joint Strike Fighter jets, known as Lots 18 and 19, by the end of June 2025, a timeline that is significantly ahead of its earlier projections. This development marks a pivotal moment for the F-35 program, which has faced persistent challenges, including delays in technology upgrades and scrutiny over its high costs. The accelerated timeline reflects ongoing discussions with the U.S. Department of Defense and signals confidence in the program’s ability to meet critical production and delivery milestones despite recent hurdles.
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The F-35, a fifth-generation multirole fighter jet designed for air dominance, precision strikes, and intelligence gathering, is a cornerstone of U.S. and allied military capabilities. With over 1,000 jets delivered worldwide, the program is one of the most ambitious and expensive in military history, with a lifetime cost estimated at over $400 billion across all partner nations. Lockheed Martin’s Chief Financial Officer, Evan Scott, recently indicated that the Pentagon has expressed a preference for combining Lots 18 and 19 into a single contract award, a move that could streamline negotiations and expedite production. This combined award is expected to cover the production of approximately 145 jets, including the F-35A for conventional runways, the F-35B for short take-off and vertical landing, and the F-35C for aircraft carrier operations.
Initially, Lockheed Martin anticipated finalizing the Lot 18 contract in the first half of 2025, with Lot 19 following by the end of the year. However, Scott’s comments at a recent Bank of America conference suggest that the company now sees potential for an earlier resolution, potentially as soon as the second quarter of 2025. This shift follows a December 2024 agreement in which the Pentagon awarded Lockheed Martin an $11.8 billion undefinitized contract action to support continued production of Lot 18 jets. This interim funding ensured a steady cash flow for the company while negotiations for the final contract value progressed, highlighting the Pentagon’s commitment to maintaining the program’s momentum. The F-35 program has not been without its challenges. Delays in rolling out the Technology Refresh 3 (TR-3) and Block 4 upgrades, which aim to enhance cockpit displays, processing power, and electronic warfare capabilities, have drawn criticism and impacted delivery schedules. These upgrades are critical for ensuring the jet remains competitive against evolving global threats. Despite these setbacks, Lockheed Martin has maintained strong demand for the F-35, with international customers, including NATO allies and partners in the Middle East and Asia, continuing to place orders. The company projects delivering between 170 and 190 F-35s in 2025, supported by a backlog of approximately 360 aircraft.
The anticipated contract award comes at a time when Lockheed Martin is navigating a complex geopolitical and economic landscape. Recent tariffs imposed on foreign parts, which the F-35 relies on from over 1,900 suppliers across a dozen countries, have raised concerns about potential cost increases. However, Lockheed Martin has emphasized its ability to mitigate these impacts through existing stockpiles and contractual mechanisms. Additionally, the company is exploring ways to enhance the F-35’s capabilities by integrating technologies developed for the Next Generation Air Dominance (NGAD) program, which it lost to Boeing. CEO James Taiclet has described this approach as a “NASCAR upgrade,” aiming to deliver 80% of the NGAD’s capabilities at half the cost, potentially positioning the F-35 as a “fifth-generation-plus” fighter. The accelerated contract timeline underscores Lockheed Martin’s strategic importance to U.S. and allied defense strategies. As the F-35 continues to serve as the backbone of modern air forces, the successful execution of Lots 18 and 19 will be critical for maintaining production stability and meeting global demand. With the Pentagon and Lockheed Martin working closely to finalize this combined award, the F-35 program appears poised to overcome its challenges and solidify its role as a linchpin of 21st-century military aviation.