Lockheed Martin Stock Plunges 8.34% Amid F-35B Grounding Concerns

On July 22, 2025, Lockheed Martin's stock experienced a significant drop of 8.34% in pre-market trading, reflecting investor concerns and market sentiment.

One of the key factors contributing to the stock's decline is the recent issues faced by the F-35B fighter jet, which has been grounded in India for over a month due to technical problems. The jet, manufactured by Lockheed Martin, encountered severe weather conditions during a mission in the Arabian Sea, leading to an emergency landing in Trivandrum, India. The aircraft has since been undergoing repairs, with reports indicating that the issues have been resolved and the jet is set to depart for Australia.

The prolonged grounding of the F-35B has raised questions about the jet's reliability and the potential impact on Lockheed Martin's defense contracts. The F-35 program, which is a significant revenue source for the company, has faced delays and budget cuts, further adding to investor concerns. Analysts have noted that the F-35 program's challenges could affect Lockheed Martin's growth prospects and earnings outlook.

Additionally, the company's second-quarter earnings report, released earlier this month, showed a decline in earnings per share (EPS) despite an increase in revenue. The report highlighted program losses and other charges, which have weighed on the company's financial performance. Analysts have expressed mixed sentiments about the company's future, with some suggesting potential upside while others remain cautious due to defense procurement concerns.