The Pentagon’s Joint Program Office (JPO) and Lockheed Martin have finalized a $24.3 billion agreement for approximately 300 F-35 stealth fighters, the two entities announced Monday evening. The contract resolves negotiations that have stretched on for about two years.
Agreement Covers Production Lots 18 and 19
According to a Pentagon contract announcement, the agreement encompasses 148 airframes each in production lots 18 and 19. Deliveries to both the U.S. government and international buyers are slated to begin in 2026.
Lockheed Martin Highlights Affordability and Capability
„The F-35 Lot 18-19 contract represents continued confidence in the most affordable and capable fighter aircraft in production today,” stated Chauncey McIntosh, Lockheed Vice President and General Manager of the F-35 program, in a press release. „We are proud to support our customers and further solidify the F-35’s role in enabling peace through strength.”
Engine Costs Still Undetermined
A spokesperson for the F-35 JPO did not immediately provide a breakdown of the cost per aircraft for the various F-35 variants.
Airframes and Engines Contracted Separately
The finalized F-35 contract follows an undefinitized contract action (UCA) awarded to Lockheed in December to initiate production for Lot 18. It’s important to note that this agreement covers only the airframes; the engines are produced by RTX subsidiary Pratt & Whitney and are awarded separately by the JPO as government-furnished equipment.
Pratt & Whitney Engine Deal in Progress
The Pentagon awarded Pratt & Whitney a nearly $2.9 billion UCA in August to begin production on Lot 18 engines, but the timeline for finalizing this deal remains unclear. Once the Lot 18 engine UCA is finalized, a flyaway cost for the aircraft – an estimated price for a fully operational plane – should become available. As Breaking Defense previously reported, the average flyaway cost of an F-35A across lots 15, 16, and 17 is $82.5 million.
Inflation Impacts Pricing
In its press release, Lockheed Martin stated that the „increase in price per jet in Lot 18-19 from previous years was less than the rate of inflation.” The Pentagon previously told Breaking Defense that Lot 18, in particular, faced „significant price increase[s]” due to inflation and rising raw material costs. The JPO has maintained that the costs for the airframe are „consistent” with those in lots 15-17 when adjusted for inflation.
Demand High Despite Political Headwinds
F-35 stealth fighters are in high demand globally amidst increasing international tensions. However, the jet has faced political challenges with some customers due to strained ties under the Trump administration.
Key Modernization Program Faces Delays
The Pentagon is currently implementing several upgrades to the F-35. However, according to a report from the Government Accountability Office earlier this month, the jet’s key modernization program, known as Block 4, will be delayed until 2031 and will be rescoped to include fewer capabilities than initially planned.
