What's Happening?
Lockheed Martin is targeting a record year for F-35 production, with plans to deliver up to 200 jets in 2025. This ambitious goal comes as global demand for the aircraft surges, pushing the company's order
backlog to a record $179 billion. The company has already delivered 143 F-35s through the third quarter of 2025 and aims to maintain a pace of one aircraft delivery per working day. The increased production is driven by finalized contracts for F-35 Lots 18-19 and significant awards for other defense systems, including CH-53K helicopters and PAC-3 MSE interceptors. Germany's recent decision to purchase 15 additional F-35s further underscores the growing demand for these jets.
Why It's Important?
The ramp-up in F-35 production is significant for several reasons. It highlights Lockheed Martin's ability to meet rising global defense needs, particularly in Europe and Asia. The increased production supports NATO's rearmament efforts and strengthens military capabilities in regions facing geopolitical tensions. For Lockheed Martin, this surge in demand translates into robust financial performance, with the company raising its earnings and sales forecasts for 2025. The expanded backlog provides a cushion against market volatility, ensuring sustained revenue streams. Additionally, the focus on international orders diversifies demand beyond U.S. budget cycles, enhancing Lockheed's global footprint.
What's Next?
Lockheed Martin's ability to achieve its stretch target of 200 F-35 deliveries will depend on maintaining production throughput and customer acceptance rates in the final quarter of 2025. The company will continue to monitor international order flows, particularly from European and Asia-Pacific countries, which could further boost production volumes. Additionally, Lockheed is vying for strategic missile defense contracts, which could serve as long-term growth catalysts. The company will also need to address any schedule or cost pressures related to the F-35's Block 4 modernization to ensure continued success.
