Lockheed Martin is poised to deliver up to 190 F-35 fighter jets in 2023, driven by robust interest from both the United States and international markets. This announcement was made during a third-quarter earnings call on the following Tuesday. The company reported the delivery of 46 aircraft in the third quarter and anticipates between 175 and 190 total deliveries in 2025, which averages out to approximately one aircraft delivered daily throughout the year. Jim Taiclet, Lockheed Martin’s chairman, president, and CEO, emphasized this growth trajectory during the call.
This positive outlook follows Lockheed Martin successfully clearing a backlog of F-35s that had been under long-term storage due to software issues, resulting in a year-long pause in deliveries. The company also reported a 12 percent year-over-year increase in aeronautics sales, attributing success to heightened F-35 production and sustainment efforts.
In related news, Taiclet highlighted the recent awards for Lot 18 and Lot 19 of the F-35 program, reaffirming the aircraft’s increasing demand. Additionally, Lockheed Martin finalized a substantial $15 billion air vehicle sustainment contract with the Joint Program Office. This four-year agreement covers aftermarket activities, including spare parts, maintenance, and repair services, extending through 2028.
International demand for the F-35 has also surged, with countries like Belgium and Denmark seeking to expand their fleets. Belgium is aiming to procure an additional 11 aircraft while Denmark is looking to add 16 jets to their existing delivery plan. “The steady demand from our international allies for the F-35 demonstrates the unmatched capability of the aircraft and gives us confidence in sustained, long-term production,” said Evan Scott, Lockheed Martin’s chief financial officer. Germany has also expressed intentions to expand its F-35 fleet, highlighting the aircraft’s global appeal.
As of the end of the third quarter, Lockheed Martin maintained a backlog of 265 jets, which grew to 416 jets following orders received in the first week of Q4. Scott noted that strong domestic and international support contributes to confidence in maintaining a delivery rate of 156 jets annually. Future program growth is anticipated to be driven by sustainment efforts, particularly as the F-35s undergo technological updates like the Block 4 upgrades.
Taiclet mentioned that while the technical integrations associated with these upgrades are complex, he remains hopeful due to unprecedented collaboration among Lockheed Martin, the government, and F-35 suppliers, including notable companies like RTX, BAE Systems, and Northrop Grumman. He stressed the importance of teamwork in overcoming previous barriers and delays, which positions the Block 4 modernization program for success.
Despite optimism, a recent Government Accountability Office report has indicated that Block 4 upgrades are currently five years behind schedule, with a projected completion timeline now extending to 2031, alongside cost increases exceeding $6 billion. Program officials have indicated that these delays have resulted in fewer capabilities for the new Block 4 major subprogram, and final cost estimates remain uncertain until the program office completes its assessment.
