Lockheed lines up deal for 850 U.S. F-35s over 10 years

The U.S. Department of War and Lockheed Martin have agreed on a framework for a 10-year F-35 production and sustainment deal that covers 850 aircraft for the United States, along with spare parts, modification kits and international orders across production Lots 21 through 30.

The framework keeps F-35 production at 156 aircraft a year and folds three things that have traditionally been bought separately into one long-term plan: new jets with their initial spares, a decade of modification kits, and fleet sustainment. The next step runs through Congress: once multiyear authority and the associated funding are granted, the F-35 Joint Program Office and Lockheed Martin will finalize contract terms, pricing and delivery schedules in a formal contract award.

“This multiyear framework strengthens the way we can plan and invest in the F-35 enterprise,” said Lockheed Martin Chairman, President and CEO Jim Taiclet. “With the greater certainty that comes from the U.S. government’s transformative approach to F-35 production and sustainment, we can make the upfront investments needed to expand capacity, improve efficiency, and build a more resilient supply chain. That’s good for the taxpayer, good for our suppliers and, most importantly, good for the United States and its allies.”

The 850 U.S. aircraft over 10 years work out to an average of 85 jets a year for the U.S. Air Force, U.S. Navy and U.S. Marine Corps, with the remainder of the 156-a-year production rate going to international partners and foreign customers. The United States plans to buy a total of 2,456 F-35s across its three services.

Until now, the F-35 has been bought in lot-by-lot contracts that often took years to negotiate. The most recent deal, covering Lots 18 and 19, was finalized on Sept. 29, 2025, after a handshake agreement the previous December, and covers 296 aircraft worth about $24.3 billion. Long-lead funding for parts for Lot 20 and Lot 21 aircraft has already been awarded, and Lot 21 is now the first lot included in the new framework.

A multiyear arrangement lets Lockheed Martin and its suppliers commit to larger, longer orders for raw materials and parts. The company says that approach will produce volume discounts, lower unit prices and savings for taxpayers estimated in the billions of dollars over the life of the program, while giving the government more predictable costs.

Readiness is a central part of the plan. The framework links aircraft production with purchases of spare and modification parts and adds integrated analytics that tie budget decisions to readiness results and give real-time visibility into parts inventories. Lockheed Martin says replacing the annual contracting cycle with long-term supplier contracts will cut turnaround times for parts and repairs and raise mission capable rates, the share of the fleet ready to fly its assigned missions.

“Our new multiyear framework gives suppliers stability to plan for the future and invest with confidence, improving readiness across the F-35 fleet,” said OJ Sanchez, president of Lockheed Martin Aeronautics.

The company estimates the program will support 317,000 U.S. jobs and generate about $79 billion in annual economic activity over the next decade. International customers would share in the benefits through economies of scale across the global fleet and its shared sustainment network.

More than 1,375 F-35s are now in service around the world, operating from 42 bases, including in 13 countries that fly the jet from home soil, and the fleet has passed 1 million flight hours. Lockheed Martin delivered a record 191 F-35s in 2025.

The F-35 Joint Program Office and Lockheed Martin will move to a formal contract award for Lots 21 through 30 once Congress grants multiyear authority and the associated appropriations, which the companies expect in the coming months.