Lockheed Martin Secures US$1 Billion Pentagon Deal for 198 F-35s

Lockheed Martin has secured a US$1.14 billion contract modification from the US Department of War to supply materials, parts, and components for 198 F-35 fighter jets for US military branches and allied customers. The Pentagon confirmed that the award expands a previously granted fixed-price incentive contract to cover production needs for Lot 20 and Lot 21 aircraft.

According to the Department of War, the funding will support materials for 65 Lot 20 F-35s and 133 Lot 21 aircraft, designated for the US Air Force, Navy and Marine Corps, as well as cooperative F-35 program partners and Foreign Military Sales (FMS) customers. The contract “was not competed,” reflecting its extension of an existing agreement.

Funding will come from multiple fiscal-year allocations and international contributions, including US$188 million from Air Force aircraft procurement for FY 2026, US$115.79 million from Navy aircraft procurement for FY 2026, US$16.23 million from Air Force procurement for FY 2025, and US$38.89 million from Navy procurement for FY 2025. The modification also includes US$556.6 million in FMS contributions and US$225.7 million from F-35 cooperative program partners.

The Naval Air Systems Command in Patuxent River, Maryland, is the contracting authority overseeing the project.

Lockheed Martin will conduct  the majority of the work at its Fort Worth, Texas, facility, which will handle 59% of production. Additional work will occur across other US and international sites, including El Segundo, California (14%); Warton, United Kingdom (9%); Cameri, Italy (4%); Orlando, Florida (4%); Nashua, New Hampshire (3%); Baltimore, Maryland (3%); San Diego, California (2%); and other international locations (2%).

The Pentagon stated the project is scheduled for completion by December 2030, emphasizing that the modification ensures Lockheed Martin can secure long-lead materials necessary to maintain production schedules for both lots. The department noted that the funding guarantees “the acquisition of materials required for the timely delivery of F-35 aircraft” across partner nations and US services.

The deal supports continued demand for the F-35, which remains the primary multirole fighter for the United States and allied air forces. Program partners and FMS customers rely on coordinated procurement cycles to align with US production, a process the Pentagon described as “critical to fleet modernization and interoperability.”

The contract comes amid ongoing public scrutiny of the F-35 program. About a year ago, entrepreneur Elon Musk criticized the aircraft as “obsolete,” arguing that future air dominance will depend on autonomous systems. While the Pentagon has not responded directly to such remarks, this contract underscores continued investment by US authorities and partner governments.