Lockheed Martin Shares Drop Amid F-35 Procurement Cuts and Rising Unmanned Systems Focus

Lockheed Martin's shares have recently seen a decline, dropping 4.26% on June 11 and marking a three-day slide of 5.21%. This downturn comes as the company's F-35 fighter jet program faces a significant challenge. The U.S. Air Force has notably reduced its procurement request for these jets, planning to purchase only 24 units in the 2026 fiscal year. This number is half of what was anticipated a year ago, raising concerns for Lockheed Martin as the Defense Department shifts its priorities.

This strategic move was detailed in the Pentagon's budget proposal delivered to Congress. The directive from Defense Secretary Peter Hegseth to cut costs by 8% over five years is altering military spending priorities across the board. As this plan unfolds, traditional procurement strategies are being reassessed, particularly in a time when unmanned systems are gaining prominence.

Despite the F-35 program's historic significance as the most expensive weapon project, its long-term sustainability is increasingly questioned. The Air Force is budgeting $3.5 billion for these 24 jets, along with an additional $531 million for advanced procurement efforts. Meanwhile, the Navy and Marine Corps are also facing similar re-evaluations with their aircraft acquisition strategies.

Criticism of the F-35 has been vocal, with notable figures like Elon Musk and political activist Laura Loomer calling for a reassessment of the program. They highlight its soaring costs and technical challenges, arguing against continued investments in manned fighter planes when automation offers new possibilities.

The Pentagon's temporary funding measures further cloud the future steps of the F-35 initiative. Lockheed Martin, holding considerable political influence within Congress, may yet see changes to these proposals. However, the focus on unmanned systems continues to inject uncertainty into the future of manned fighter jets.