Department of War and Lockheed Martin Finalize Landmark 10-Year F-35 Deal, Securing $7B in Private Investment

October 22, 2026 – Today, the Department of War and Lockheed Martin finalized a landmark 10-year framework agreement to strengthen the F-35 Lightning II Joint Strike Fighter fleet. The agreement creates a stable, long-term procurement signal to modernize and expand America’s 5th generation tactical aircraft. Execution of the agreement remains subject to Congressional authorization and appropriations.

“We have fundamentally changed how we stabilize the American defense industrial base to produce at speed and scale,” said Under Secretary of War Michael P. Duffey. “This agreement with Lockheed Martin proves it. By aligning financial incentives with actual performance, we are ensuring our warfighters are equipped with the lethal capabilities they need to fight and win.”

This framework marks a major operational milestone for the Department’s Acquisition Transformation Strategy, which drives industrial base resilience through long-term procurement visibility and rapid private capital investment. In exchange for this decade-long commitment, Lockheed Martin will self-fund at least $7 billion in initiatives that support the F-35 Program.

Furthermore, it guarantees a minimum floor of 850 U.S. aircraft over the ten-year period and includes procurement of initial spare parts and modification kits, plus sustainment of the global F-35 Fleet. By integrating hardware requirements across the supply chain, this deal maximizes purchasing power and delivers true economies of scale.

Saource US DoW

Photo courtesy USAF/SSG N. Truitt