Lockheed Martin Secures F-35 Contract for 296 Fighters

A U.S. Navy Sailor directs an F-35C fighter on the flight deck of USS George H.W. Bush (CVN 77) during routine flight operations in the Atlantic Ocean. Image – U.S. Navy by Mass Communication Specialist 2nd Class Nicholas Avis via DVIDS.

In the flurry of last-minute defense spending before the fiscal year’s end, the Pentagon moved to formalize Lot 18 and 19 F-35 production with a $12.5 billion contract for Lockheed Martin. Specifically, the contract modification “definitizes” Lot 18 at 148 jets and adds scope for building and delivering 148 Lot 19 aircraft. Work will support U.S. military, Foreign Military Sales (FMS), and F-35 program partner customers and is expected to be completed in August 2028. 

This new contract modification adds finality to a December preliminary deal between Lockheed Martin and the F-35 Joint Program Office regarding the two production lots. Building on a previous $11.8 billion cap agreement for Lot 18, the cumulative value for the 296 fighters now stands at $24.3 billion.  

Although unit costs have increased, according to Lockheed Martin and the JPO, the price per aircraft negotiated for Lots 18 and 19 falls below the overall inflation rate. 

Also included in the contract announcement is the breakdown of Lot 19:

  • U.S. Air Force : 40 F-35A
  • U.S. Marine Corps : 12 F-35B, 8 F-35C
  • U.S. Navy: 9 F-35C
  • Program Partner Nations: 13 F-35A, 2 F-35B
  • FMS Customers: 52 F-35A, 12 B-35B

In a separate posting on X, Lockheed Martin Europe revealed that Germany is one of the FMS customers to receive its initial F-35s from the contract. In late 2022, German leadership signed an agreement for 35 F-35A fighters. Recent reports indicated German interest in procuring 15 additional jets for its planned F-35 fleet, but the potential deal remains disputed by officials

The Pentagon’s FY26 F-35 funding request for 47 units across all variants has yet to be formally settled by Congress, but the request represents fewer overall F-35s than in previous years. For FY26, the Air Force requested 24 F-35As, the Navy 11 F-35Bs on behalf of the Marine Corps, and 12 F-35Cs for the Navy and Marine Corps. 

The contract announcement comes on the heels of a recent government oversight report that found F-35 aircraft and engine delivery delays during 2024. The U.S. government also reported significant backups and cost overruns related to F-35 Block 4 modernization efforts, which, taken in context, cast doubt on the work completion projections outlined for Lots 18 and 19.  

Jon Hemler
Lead Analyst, Military Aerospace and Weapons Systems at  |  + posts

A former naval officer and Seahawk helicopter pilot, Jon currently leads the Military Aerospace and Weapons Systems group at Forecast International. He specializes in current and emerging military fixed and rotary-wing aircraft. With over a decade of experience in military aviation, operations, and education, he forecasts a diverse range of defense and naval systems.

Influenced by his time as a former Presidential Management Fellow and International Trade Specialist at the Department of Commerce, Jon gained insights into government operations and global markets.

Before joining Forecast International, he served as an NROTC instructor and Adjunct Assistant Professor at the University of Texas, teaching undergraduate courses in naval history, navigation, defense organization, and naval operations and warfare.

About Jon Hemler

A former naval officer and Seahawk helicopter pilot, Jon currently leads the Military Aerospace and Weapons Systems group at Forecast International. He specializes in current and emerging military fixed and rotary-wing aircraft. With over a decade of experience in military aviation, operations, and education, he forecasts a diverse range of defense and naval systems. Influenced by his time as a former Presidential Management Fellow and International Trade Specialist at the Department of Commerce, Jon gained insights into government operations and global markets. Before joining Forecast International, he served as an NROTC instructor and Adjunct Assistant Professor at the University of Texas, teaching undergraduate courses in naval history, navigation, defense organization, and naval operations and warfare.

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