What's Happening?
Lockheed Martin has successfully cleared the backlog of F-35 fighter jets that were parked at its Fort Worth, Texas facility, following a year-long delivery freeze imposed by the F-35 Joint Program Office
(JPO). The freeze, lifted in July 2024, was due to delays in the Technology Refresh-3 (TR-3) upgrades. In 2025, Lockheed delivered a record 191 F-35s, and plans to deliver 156 aircraft in 2026, which is considered the 'sweet spot' for the company. The TR-3 hardware upgrade is essential for the Blk. 4 software package, with full completion expected by 2031. The rollout of these capabilities to international customers remains uncertain, as each nation will decide on the configuration level for their fleet.
Why It's Important?
Clearing the F-35 backlog and achieving a steady delivery pace is crucial for Lockheed Martin's operational efficiency and financial performance. The F-35 program is a significant component of the U.S. defense strategy, and timely deliveries are essential for maintaining military readiness. The delays in TR-3 and Blk. 4 upgrades highlight challenges in defense procurement and technology integration. The resolution of these issues will impact international partners relying on the F-35 for their defense capabilities, influencing global military dynamics.
What's Next?
Lockheed Martin will focus on maintaining a consistent delivery pace while addressing the integration of TR-3 and Blk. 4 capabilities. The JPO's decisions on the Engine Core Upgrade, projected for production in 2031, will be pivotal in determining the future configuration of the F-35 fleet. International customers will need to decide on their fleet's upgrade paths, potentially affecting their defense strategies and interoperability with U.S. forces.
