Lockheed Martin Stock Soars 4.63% on FMT Launch Despite Defense Cuts

On June 13, 2025, Lockheed Martin's stock rose by 4.63% in pre-market trading, marking a significant rebound after recent declines.

Lockheed Martin has recently introduced its Full Mission Trainer (FMT) for the latest F-16 Block 70/72 and F-16V fighter jets. This advanced simulator provides an immersive and highly realistic training experience, allowing pilots to practice critical maneuvers such as aerial refueling and night vision operations. The FMT uses a series of high-resolution laser projectors and a sophisticated physics engine to create a realistic environment, enabling pilots to prepare for real-world missions effectively.

Despite the positive developments in its training solutions, Lockheed Martin has faced challenges due to recent changes in U.S. defense procurement. The U.S. Air Force has significantly reduced its request for new F-35 fighter jets, planning to purchase only 24 aircraft in the 2026 fiscal year, half of what was initially expected. This reduction is part of a broader cost-cutting initiative by the Department of Defense, which aims to reduce military spending by 8% over the next five years. The F-35 program, known for its high costs and technical issues, has been a subject of controversy, with critics questioning its long-term viability.

Additionally, Lockheed Martin is grappling with supply chain issues, particularly the availability of rare earth materials crucial for the F-35's production. China's tightened export controls on these resources have put pressure on U.S. defense contractors, leading to potential cost increases and production delays. These challenges highlight the need for Lockheed Martin to diversify its supply chain and explore alternative sources for critical materials.