Key Takeaways
- Lockheed Martin lowered its estimate for F-35 deliveries this year and pushed back its outlook for first deliveries of its updated TR-3 jet.
- The company expects 97 F-35 deliveries this year, down from its previous guidance of 100-120.
- Shares of Lockheed Martin tumbled 4.8% on Wednesday to their lowest level in 11 months.
Lockheed Martin (LMT) warned that it will deliver fewer-than-expected F-35 jet fighter this year, and that the first of its updated Technology Refresh (TR-3) jets won’t be ready until next year.
The defense contractor explained in a regulatory filing it anticipates delivering 97 F-35 in 2023, down from its earlier estimate of 100 to 120. It also said the initial delivery of TR-3s will occur between April and June of 2024. It was previously projected that would happen this year.
The company added that the total number of F-35 deliveries next year will depend on when the first TR-3s are delivered, as well as the time needed to complete the acceptance process by customers. Lockheed Martin continues to assess how this will impact its business in 2024, the company said.
The company explained it is producing F-35s at a rate of 156 per year and expects to continue at that pace as it works to finalize TR-3 software and development.
The F-35 is the company’s largest program. Sales jumped by $735 million in the second quarter, making up about three-quarters of the overall revenue increase for Lockheed Martin’s Aerospace unit.
Shares of Lockheed Martin tumbled 4.8% on Thursday to their lowest level since last October.
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