On Tuesday, July 22, American defense company Lockheed Martin raised its annual sales target. Last week, the Pentagon unexpectedly began receiving deliveries of F-35 fighter jets, allowing the company to resume the delivery of the F-35 aircraft.
According to Reuters, after a months-long pause in deliveries of the F-35 due to software upgrades, the Pentagon resumed accepting the F-35 last week. Under the “Technology Refresh 3” (TR-3) program, the company upgraded the F-35 to provide better display and processing capabilities. The TR-3 program involves hardware and software improvements and is seen as a key part of the broader upgrade of stealth jets.
It is reported that despite the resumption of F-35 deliveries, some software upgrades are still pending completion. As a result, the Pentagon will withhold a portion of payments until all remaining improvement plans are finalized.
Manufacturing the F-35 fighter jet is the world’s largest defense project, contributing approximately 30% of the company’s revenue.
CEO of Lockheed Martin, Jim Taiclet, stated: “The F-35 remains a top priority for us. Recently, we delivered the first aircraft configured with TR-3 to customers, and we plan to deliver 75 to 110 F-35s in 2024 to meet our expectations.”
He mentioned that these upgrades are crucial to ensuring that the F-35 remains the world’s most advanced fighter jet and serves as a key aircraft node in the Department of Defense’s joint all-domain framework, with full technical updates expected to take several months.
The company expects sales this year to range between USD 705 billion to USD 715 billion, surpassing the previous forecast of USD 685 billion to USD 700 billion.
Additionally, the company is benefiting from an additional allocation of USD 95 billion approved by Congress, including aid to Ukraine and Israel.
Ukraine and Israel have depleted significant ammunition in the warfare, including the “Patriot” air defense interceptor manufactured by the company for shooting down enemy missiles.
In the second quarter of this year, the company reported earnings per share of $6.85, exceeding the London Stock Exchange Group’s estimate of $6.46 per share. Quarterly total sales increased by 8.5% to USD 18.12 billion, higher than the estimated USD 17.04 billion.
Headquartered in Bethesda, Maryland, Bethesda-based aerospace manufacturer was formed in 1995 through the merger of Lockheed Corporation and Martin Marietta Corporation, known for developing and manufacturing military aircraft. The company’s production of the F-35 fighter jet is currently the world’s most advanced fifth-generation aircraft.