Lockheed Martin Agrees 10-Year Framework for 850 F-35 Jets
Lockheed Martin has agreed to sell the Pentagon at least 850 F-35 fighters over 10 years in a framework worth at least $78 billion, the company said on October 22 alongside its third-quarter results. The agreement is not a sales order and needs congressional approval.
The announcement came with a raised 2026 outlook. Lockheed Martin reported third-quarter sales of $20.71 billion and a record backlog of $292 billion, lifted by a $52.5 billion multiyear PAC-3 award.
Lockheed Martin F-35 Framework Covers 850 Jets Over a Decade
| Item | Detail |
|---|---|
| Customer | US Department of Defense |
| Contractor | Lockheed Martin |
| Quantity | At least 850 F-35 aircraft |
| Period | 10 years |
| Value | At least $78 billion (Reuters puts it at $78.2 billion using the $92 million base price) |
| Status | Framework, not a sales order; congressional approval required |
| Production rate | Lockheed Martin aims to hold output at 156 aircraft a year |
| Company investment | At least $7 billion of self-funded F-35 initiatives |
| Announced | October 22, 2026 |
Reuters notes that the agreement “does not constitute a sales order”, although Lockheed Martin treats it as a prearranged long-term contract. Congress would have to approve the purchases before any aircraft are formally ordered.
OJ Sanchez, president of Lockheed Martin’s aeronautics segment, said the company’s own investment would help “both with the ability to produce the capabilities on the production line now.” The company plans to put at least $7 billion of its own money into F-35-related initiatives.
What the F-35 Costs and How Fast It Is Built
Lockheed Martin gave unit prices for each of the three variants. Prices are expected to rise with inflation and labor costs, according to the Reuters report. The company wants to keep annual production steady at 156 aircraft.
| Variant | Base unit price | Role |
|---|---|---|
| F-35A | $92 million | Conventional takeoff and landing, flown by the US Air Force and many export customers |
| F-35B | $121 million | Short takeoff and vertical landing, for the Marine Corps and some allied navies |
| F-35C | $110 million | Carrier variant for the US Navy |
The jet’s future has been debated for years, including whether it will be joined by newer designs. Our look at what comes after the F-35 covers the F-47, F/A-XX and drone wingmen.
Third-Quarter Results Lift Lockheed Martin’s Outlook
Third-quarter sales for the period ended September 27 rose 11% to $20.71 billion, ahead of the $20.51 billion analysts expected. Earnings per share came in at $7.97 against a forecast of $7.43. Shares rose as much as 10% in early trading, on course for their biggest percentage gain in three months.
Missiles sales climbed 24% on higher PAC-3 and THAAD production. Aeronautics revenue rose 13%, helped by the F-35 and C-130 programmes. The backlog reached a record $292 billion, up 27% from the previous quarter, after a $52.5 billion multiyear PAC-3 Missile Segment Enhancement award.
| Measure | Previous range | Raised range |
|---|---|---|
| Sales | $79.75 to $81.75 billion | $80 to $82 billion |
| Earnings per share | $29.95 to $30.65 | $30.35 to $30.75 |
| Free cash flow | $7.0 to $7.2 billion | $7.8 to $8.0 billion |
Lockheed Martin Company Profile
| Item | Detail |
|---|---|
| Headquarters | Bethesda, Maryland |
| Founded | 1995 (merger of Lockheed Corporation and Martin Marietta) |
| Employees | About 123,000 (2025) |
| Revenue | About $75.05 billion (2025) |
| CEO | James Taiclet |
| Segments | Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, Space |
| Known programmes | F-35, F-16, C-130J, PAC-3 MSE, THAAD |
What the Framework Does Not Yet Guarantee
A 10-year framework gives Lockheed Martin and its suppliers a planning number, but it does not commit the Pentagon to buy 850 aircraft. Each year’s purchase still depends on the budget Congress passes. That reading is analysis, not a company claim.
The pairing with the PAC-3 award is notable. Lockheed Martin’s two fastest-growing lines, F-35 fighters and PAC-3 interceptors, now both sit under long-term agreements, which is the kind of visibility suppliers have asked for as production ramps up.
Lockheed Martin F-35 Framework FAQ
How many F-35s does the framework cover?
At least 850 aircraft over 10 years, worth at least $78 billion.
Is it a firm order?
No. Reuters reports the agreement does not constitute a sales order and requires congressional approval.
How much does an F-35 cost?
The base price is $92 million for the F-35A, $121 million for the F-35B and $110 million for the F-35C, and prices are expected to rise with inflation and labor costs.
What was Lockheed Martin’s backlog in the third quarter?
A record $292 billion, up 27% sequentially, boosted by a $52.5 billion multiyear PAC-3 MSE award.
Did Lockheed Martin raise its 2026 forecast?
Yes. It now expects sales of $80 to $82 billion, earnings per share of $30.35 to $30.75 and free cash flow of $7.8 to $8.0 billion.
- Reuters – “Lockheed lifts annual forecast as missile, jet production ramps up” (October 22, 2026)
- Wikipedia – Lockheed Martin; F-35 Lightning II (company and programme background)
