Lockheed Martin wins $871M F-35 contract modification

On September 18, the Department of War awarded Lockheed Martin an $871 million modification to an existing F-35 Lightning II contract. The deal raises the ceiling to provide additional support equipment for land-based and sea-based operational site activation and fleet sustainment. Work will take place primarily in El Segundo, California, and Fort Worth, Texas, with completion expected in February 2031.

The contract modification supports the US Air Force, Navy, Marine Corps, Cooperative Program Partners, and Foreign Military Sales customers. Under the agreement terms, no funds were obligated at the time of the award. The $871 million represents a ceiling figure rather than guaranteed immediate revenue, with funds allocated as individual orders are placed.

The award covers five years and represents a low-single-digit percentage of the company's $75 billion in 2025 annual sales. The award follows scrutiny over defense budgets, including the Air Force cutting its fiscal 2026 request to 24 planes from an initial forecast of 48. Lockheed Martin maintains a record order backlog of $230 billion and raised its guidance for the remainder of 2026.

As of September 18, Lockheed Martin traded at a forward price-to-earnings ratio of 17.49, below the sector median of 19.31. Institutional filings also show Citadel Investment Group held a $342 million stake in the company, while Holocene Advisors held nearly $291 million.