Lockheed Martin Corporation (NYSE: LMT) announced a series of major defense contracts yesterday, collectively valued at more than $25 billion. The monumental haul was spearheaded by the long-awaited finalization of a significant agreement for the F-35 fighter jet program, providing substantial revenue visibility for the American aerospace and defense leader.
Third-Quarter Earnings Preview Shaped by New Deals
With this influx of new business, investor attention now turns to the company’s upcoming third-quarter financial results, scheduled for release on October 28. Market analysts are forecasting earnings per share of $6.33. The recently secured contracts are expected to be a primary topic during the subsequent investor call, where scrutiny will likely focus on margin performance and detailed production scheduling for the newly funded programs.
F-35 Program Receives $12.53 Billion Production Boost
The centerpiece of yesterday’s announcements is a definitive $12.53 billion contract modification from the Pentagon for the F-35 Lightning II program. This agreement concludes nearly two years of negotiations and secures the manufacturing of 296 advanced fighter aircraft. The production lot is divided evenly, with 148 jets designated for Lot 18 and another 148 for Lot 19.
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Deliveries under this contract are slated to commence in 2026 and will include all three variants of the F-35, destined for the U.S. military and allied international partners. A notable achievement highlighted in the agreement is Lockheed Martin’s success in limiting the per-unit cost increase for the jets to a rate below inflation. This comes as a strong indicator of the company’s effective cost management, especially amidst ongoing global supply chain challenges and rising material expenses.
Diverse Portfolio Yields Additional $1.47 Billion in Awards
Beyond the flagship F-35 agreement, Lockheed Martin secured an additional $1.47 billion in contracts across its other business divisions, demonstrating the breadth of its defense portfolio.
Key awards from this series include:
* A $647 million contract for the Trident II strategic missile system, a crucial component of the United States’ nuclear deterrence capability.
* $245.4 million allocated for MK 48 heavyweight torpedoes.
* $233 million for advanced infrared search and track systems.
* A further $131.4 million for combat systems engineering services.
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