LMT · Earnings call · 2026Q3T · Full report

F-35 Production and Sustainment

LOCKHEED MARTIN CORP · 2026-10-22 · Importance 64 · Surprise 42 · In source text

Management said a 10-year F-35 multi-year agreement establishes a path to 850 U.S. aircraft and production of 156 aircraft per year for 10 years, augmented by allied sales. The agreement is intended to provide production stability across Lockheed Martin and its suppliers and support sustainment and future development. Management said the multi-year structure can enable investments in production, fleet readiness, and modernization while improving the predictability of the program for government and industry.

Key facts

• Lockheed Martin’s F-35 agreement sets a path to 850 U.S. aircraft over 10 years, augmented by allied sales, for total production of 156 aircraft per year for 10 years.
• Lockheed Martin shifted its assumption for the next F-35 lot award timing from 2026 to 2027.
• Lockheed Martin’s F-35 strategy includes seeking sixth-generation technologies equivalent to 80% of a clean-sheet sixth-generation aircraft at 50% of its cost.
• Lockheed Martin’s F-35 production guidance assumes an annual production rate of 156 aircraft, which management described as a healthier and more predictable system under the agreement.
• If Lockheed Martin signs a Lot 20 contract in 2026, it would be upside to effectively all of its 2026 metrics and is not included in guidance.
• Lockheed Martin said F-35 production is accretive to Aeronautics and company margins.
• Lockheed Martin was well underway with F-35 Lot 20 using advanced procuring funds, and management said the production line was looking very strong.
• Lockheed Martin has seen rising sales growth in F-35 sustainment.

Impact estimates