Lockheed Martin has reached a tentative long-term agreement with the Pentagon covering delivery of at least 850 F-35 fighter aircraft over the next decade, giving the defense contractor greater visibility into one of the world’s largest military-aircraft programs.
The framework could ultimately exceed $78 billion based on current aircraft values, although it is not equivalent to an immediate firm order for the entire amount.
Lockheed expects to maintain production at approximately 156 F-35s annually and plans to invest more than $7 billion of its own capital to support the program.
The agreement arrives as geopolitical tensions are driving governments to replenish weapons inventories and increase military spending.
Lockheed’s third-quarter revenue increased 11% to $20.71 billion, supported by stronger missile and aeronautics activity.
The company also raised its full-year outlook.
Lockheed now expects 2026 sales of approximately $80 billion to $82 billion and earnings of $30.35 to $30.75 per share.
Its backlog reached a record $292 billion.
Missile-defense demand is another major contributor.
The backlog includes a $52.5 billion PAC-3 contract, while production of PAC-3 and THAAD interceptors continues to increase.
Lockheed also lifted its free-cash-flow forecast to as much as $8 billion.
The F-35 remains strategically central to the company’s aeronautics operation and to the defense planning of the United States and numerous allied governments.
The new framework provides longer-term production visibility but should not be interpreted as an immediate $78 billion booked sale.
Actual aircraft purchases will depend on future contracts, appropriations, production schedules and customer requirements.
Investors will now watch how quickly the Pentagon converts the framework into firm orders, whether Lockheed can increase production without compromising margins and how sustained global defense spending affects the company’s record backlog.
