Lockheed Martin exec: Continue to expect between 170 to 190 deliveries on F-35 for the year

Lockheed Martin exec: Continue to expect between 170 to 190 deliveries on F-35 for the year

Lockheed Martin has received a $180 million contract modification from the U.S. Navy to convert three F-35s into flight sciences aircraft, as announced by the Pentagon on April 21, 2025 [1]. This work is essential to prevent any increase in the test capability gap and is part of a broader effort to expand the test fleet. The F-35 Joint Program Office (JPO) has been urging Congress for several years to increase the number of test aircraft to maintain a high tempo of testing as the program transitions from the Technology Refresh 3 (TR-3) to Block 4 improvements.

The contract modification includes the procurement of materials, parts, and components needed for the conversion. This typically involves adding specialized equipment such as spin chutes, cameras, load-sensing instrumentation, and telemetry gear, while removing non-essential hardware. The converted aircraft will support future, holistic flight science testing of Block 4 capabilities for the Air Force, Marine Corps, Navy, non-U.S. Department of Defense program partners, and Foreign Military Sales customers.

The conversion work is scheduled to be completed by December 2028. Delays in testing for TR-3 led to a yearlong hold on accepting F-35 deliveries from 2023 to 2024. However, the hold was lifted last summer when program director Lt. Gen. Michael Schmidt determined that the TR-3 software was sufficiently stable for safe and productive flight operations. The JPO has identified a shortage of test aircraft and looming retirements as factors contributing to delays in testing TR-3. The JPO has also indicated that the scope of the Block 4 upgrade will require a higher test tempo than previously achieved.

The Navy awarded the contract, highlighting Lockheed Martin's strategic position in the defense sector. The contract was awarded directly, bypassing competitive bidding, which underscores the company's strong standing in the industry. Analysts have set an average one-year price target of $527.62 for Lockheed Martin, suggesting a promising upside of 15.12% from the current price of $458.33 [2]. The consensus among brokerage firms is to "Outperform" the stock, indicating a favorable outlook from the investment community.

The F-35 Lightning II Joint Strike Fighter is one of the world's most advanced fighter jets, produced at a facility in Fort Worth, Texas, by Lockheed Martin. The plant is responsible for producing over 150 aircraft annually, contributing significantly to the U.S. economy. The F-35 program, however, has faced criticism due to rising costs and developmental setbacks but continues to be upgraded and recognized as a top fifth-generation fighter [3].

References:
[1] https://www.airandspaceforces.com/lockeed-martin-180-million-three-test-f-35/
[2] https://www.gurufocus.com/news/2792422/lockheed-martin-lmt-secures-180m-navy-contract-modification
[3] https://www.aol.com/inside-mile-long-factory-line-090302555.html