The proposed 10-year agreement with the U.S. Defense Department aims to streamline operations by producing 850 aircraft while securing sustainment services and spare parts. By locking in a production rate of 156 jets annually, the company effectively bypasses the traditional, volatile annual contracting cycle. This move provides a predictable manufacturing cadence for both the military and international partners.
In section Market Quotes
Lockheed Martin Shares Climb on Record Backlog and F-35 Deal
Lockheed Martin shares jumped 3.7% in premarket trading Thursday, reaching $572 after the defense contractor unveiled a decade-long framework agreement for its F-35 program. The deal, paired with a record-shattering $291.98 billion backlog, signals a shift toward long-term stability for the company's most significant production line.
Financial momentum remains strong, with the company’s total backlog surging 27% since the second quarter. Third-quarter results exceeded expectations, leading management to revise their full-year financial guidance upward. Having already seen a 14% gain year-to-date through Wednesday’s close, investors are responding to the company's sustained growth and the long-term visibility provided by these new government commitments.
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