Lockheed Martin and Avio Sign Agreement to Expand US Solid Rocket Motor Production

Lockheed Martin will invest at least $7 billion in the F-35 program over 10 years, according to a finalized framework. The funds will support spare parts, modification kits, and sustainment for the global fleet. The U.S. Department of War announced the self-funded initiatives, but the total value and aircraft prices remain undisclosed. GAO reported readiness shortfalls across all F-35 variants, citing software delays and parts shortages.

Lockheed Martin (LMT) shares rose 7% after reporting a 292 billion dollar contract backlog. Q3 sales increased 11% to 20.7 billion dollars, with earnings of 1.8 billion dollars, or 7.97 dollars per share, exceeding estimates. The company also announced a 10-year F-35 production deal with the U.S. Defense Department.

The U.S. Department of Defense and Lockheed Martin agreed to a 10-year framework for at least 850 F-35s, with annual production of 156 aircraft. Lockheed will invest $7 billion in the program. The deal requires congressional approval and funding. Lockheed faces separate funding issues on F-35 Lot 20, which may impact earnings.

Lockheed Martin and the Pentagon agreed on a framework for producing 850 F-35 jets over 10 years, with 156 aircraft annually. The deal, not yet a contract, includes international orders and sustainment work. Lockheed will invest $7 billion. The framework supports 317,000 U.S. jobs and $79 billion in annual economic activity, according to the company.

The Pentagon agreed to procure at least 850 F-35 stealth fighters from Lockheed Martin over the next decade. The deal, valued at up to $86.8 billion, aims to bolster U.S. air defense capabilities against China and Russia. Lockheed Martin reported record earnings, with a 27% increase in order backlog to $292 billion and 11% sales growth to $20.7 billion. The F-35 program faces challenges, including rising maintenance costs and declining aircraft readiness, according to a GAO report.

Lockheed Martin reported 3Q 2026 revenue of $20.71B, net income of $1.85B, and EPS of $7.97, up 11.3%, 14%, and 14.7% YoY. Nine-month sales rose 7% to $58.8B, driven by missile-defense and F-35 production. Missiles and Fire Control sales increased 17% YoY. The company delivered 43 F-35 aircraft in the quarter, with a backlog of 274. Supply-chain and inflation pressures persist, but the company is securing materials. Proposed 2027 budget priorities include increased weapons procurement.