Stock Markets March 9, 2026

Lockheed Martin Lands $761 Million in U.S. Defense Contracts

Awards cover long-lead F-35 production materials and SPY-1 radar component repairs

By Leila Farooq LMT
Lockheed Martin Lands $761 Million in U.S. Defense Contracts
LMT

Lockheed Martin has received two contracts from U.S. defense procurement agencies totaling about $761 million. The largest award - $700.4 million - modifies an existing contract to supply long-lead materials and components for Lots 20 and 21 of F-35 production aircraft, including airframes for Denmark and contributions for cooperative partners and foreign military customers. A separate $60.6 million contract covers repair of 123 components for the SPY-1 Radar System used by the Aegis Weapon System.

Key Points

  • Lockheed Martin received two U.S. defense contracts totaling about $761 million, impacting the defense and aerospace sectors.
  • A $700.4 million modification to an existing F-35 contract will procure long-lead materials and components for Lots 20 and 21, including aircraft for Denmark and funding for cooperative partners and foreign customers.
  • A separate $60.6 million firm-fixed-price contract in Moorestown, New Jersey, covers repair of 123 SPY-1 Radar System components for the Aegis Weapon System.

Lockheed Martin Corp. has been awarded two contracts by U.S. defense contracting authorities that together total approximately $761 million.


F-35 production contract - $700.4 million

The principal award, valued at $700.4 million, was issued to Lockheed Martin Aeronautics Co. in Fort Worth, Texas, as a modification to an existing fixed-price incentive contract. The contract modification is intended to procure long-lead materials, parts and components necessary to support Lots 20 and 21 of F-35 production aircraft. The scope explicitly includes aircraft destined for the government of Denmark and provides additional funding for F-35 Cooperative Program Partners and Foreign Military Customers.

Work on this contract will be carried out across multiple locations. The distribution of work is identified by percentage as follows: Fort Worth, Texas - 59%; 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 locations outside the continental U.S. - 2%. The contract specifies an expected completion date of December 2030.

Funding for this modification is provided up front from partner and foreign military sources, with $305.9 million coming from F-35 cooperative program partner funds and $394.5 million provided by Foreign Military Sales customer funds. These funds were obligated at the time the award was made. Naval Air Systems Command in Patuxent River, Maryland, is identified as the contracting activity for this award.


SPY-1 radar component repair contract - $60.6 million

Separately, Lockheed Martin Corp. in Moorestown, New Jersey, received a $60.6 million firm-fixed-price contract to repair 123 components that support the SPY-1 Radar System for the Aegis Weapon System. The work for this contract is to be performed entirely in Moorestown, New Jersey, and ordering is expected to conclude by March 2031.

The contract notice indicates that no funds were obligated at the time of award for the radar repair contract. Instead, individual delivery orders under the agreement will be funded with appropriate fiscal year working capital funds from the Navy as those orders are issued. Naval Supply Systems Command Weapon Systems Support in Mechanicsburg, Pennsylvania, is listed as the contracting activity.


Both awards detail work locations, funding arrangements and contracting authorities but do not provide additional operational or programmatic context beyond the procurement and repair activities described above.

Risks

  • Funding timing and allocation - The radar repair contract has no funds obligated at award; delivery orders will be funded with Navy working capital as issued, which could affect timing for those repairs (impacts defense suppliers and logistics).
  • Long timeline for F-35 production work - The F-35 modification extends to a December 2030 completion date, introducing long-term execution risk across multiple sites and suppliers (impacts aerospace manufacturing and supply chain participants).

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