The U.S. Department of Defense has been withholding $5 million per aircraft since last year due to these delays. However, this figure was reduced by approximately $1.2 million per plane in January after Lockheed Martin showed signs of progress with the TR-3 upgrade, according to the report.
Despite this reduction, funding will continue to be withheld for newly produced jets, with the majority of funds still pending. The Pentagon’s programme office stated these funds “will continue to be released incrementally” into next year.
The Pentagon has not yet responded to a Reuters request for comment, while Lockheed Martin declined to comment ahead of its second-quarter earnings announcement next week. The F-35 programme remains a key element of Lockheed’s business, accounting for roughly 30% of the company’s total revenue.
Additionally, the company may face further financial impact due to a reduced number of F-35s requested by the Trump administration in the fiscal 2026 budget. The world’s largest defence contractor continues to navigate the implications of these budgetary and production challenges.
Source: Bloomberg.
