Lockheed faces $700M delay in F-35 revenue as tech updates drag on

Lockheed Martin is facing a $700 million revenue delay due to extended negotiations with the Pentagon over the next two F-35 production lots, impacting its third-quarter earnings. Without a finalized contract, Lockheed continues production using its own funds to support lower-tier suppliers, as reported by Defense One.

The leading defense contractor anticipates completing the deal for lots 18 and 19 of the F-35, the next two production batches of the advanced fighter, possibly pushing $2 billion in sales into 2025 should negotiations continue into next year. Additionally, delays in delivering new Technology Refresh-3 (TR-3) capabilities, crucial to making the F-35 combat-ready, have cost Lockheed another $600 million. Full TR-3 capabilities are expected to be ready by 2025. The company delivered 48 F-35s in the third quarter and projects 90-110 deliveries this year.

Even still, a next generation fighter remains in planning.