Lockheed Martin (LMT) Accelerates Defense Production with F-35 Milestones and Missile Expansion

• Lockheed Martin set a new annual record .
• The company missile production .
• Global defense spending is rising amid heightened geopolitical tensions.
• The F-35 program surpassed one million flight hours and completed key software upgrades last year.

Lockheed Martin (LMT) demonstrated significant production momentum across its defense portfolio in 2025. The company shattered F-35 delivery records while securing a transformative agreement to scale missile interceptor output. These developments coincide with growing international defense budgets and heightened operational demands for advanced military systems. Investors are monitoring how these catalysts could drive Lockheed Martin's revenue growth amid global security concerns.

How Did Lockheed Martin Achieve Record F-35 Production in 2025?

Lockheed Martin , . This achievement reflected program maturity alongside expanded international orders from Italy, Denmark, and other NATO partners. The company simultaneously finalized the largest production contracts in F-35 history, .

The program reached one million flight hours in 2025 while deploying the advanced TR-3 software upgrade globally. Combat operations showcased the F-35's capabilities, including suppression of Iranian air defenses and interception of Russian drones over Poland—marking NATO's first aerial engagement using the platform. With nearly 1,300 aircraft now operational across 12 nations, the F-35 contributes approximately one-third of Lockheed Martin's total revenue.

What Does Lockheed Martin's PAC-3 Expansion Mean for Missile Defense?

Lockheed Martin will . Department of Defense. , . The framework employs to preserve cash neutrality while enabling supplier investments in capacity expansion.

The acceleration plan involves expanding manufacturing facilities, implementing advanced tooling lines, adding automation, and diversifying suppliers. This initiative supports updated emphasizing long-term demand signals to strengthen industrial capabilities. PAC-3 MSE interceptors provide critical hit-to-kill defense against tactical ballistic missiles, cruise missiles, and aircraft.

How Is Rising Defense Spending Impacting Lockheed Martin?

Global defense expenditure is climbing amid heightened security concerns, . The trend benefits Lockheed Martin through expanded international F-35 orders . President Trump's signals further growth potential despite potential congressional hurdles.

Analysts identify a "2026 defense supercycle" driven by geopolitical realignments and military modernization demands. Lockheed Martin's record production rates position it to capture increased budget allocations while advancing key technologies. The company maintains strategic focus on supply chain resilience and cost efficiency across major programs to sustain competitiveness.