Lockheed Martin (LMT) Reaches Framework Deal With Department of War for 850 F-35 Jets

Lockheed Martin Corp. (LMT) said Thursday it reached a framework agreement with the Department of War covering production and maintenance of 850 U.S. F-35 fighter jets over 10 years, sending shares up 1.85% in pre-market NYSE trading after Wednesday's close of $551.51. The deal includes spare parts, modification kits and maintenance support for 10 years, plus international orders for aircraft in Lots 21-30. Production is expected to continue at 156 aircraft per year. Final contract terms, pricing and delivery schedules hinge on multiyear procurement authority and related funding being approved in the coming months. Lockheed said the arrangement is expected to save billions of dollars over the aircraft's lifecycle through long-term pricing and volume discounts, support 317,000 U.S. jobs and generate about $79 billion in annual economic activity over the next decade. More than 1,375 F-35 aircraft are currently in service worldwide, with the fleet having logged over one million flight hours, the company said.