Company Overview
Lockheed Martin secured a monumental $24.3 billion contract on September 29, 2025, for production of 296 F-35 Lightning II aircraft across production Lots 18 and 19, representing one of the largest single procurements in F-35 program history. The deal includes approximately 210 F-35As for the U.S. Air Force, 52 F-35Bs for the Marine Corps, and 34 F-35Cs for naval carrier strike groups, with deliveries scheduled through June 2027.
What makes this particularly compelling is the timing. The aerospace and defense sector has surged 44% year-to-date in 2025, crushing the S&P 500’s 10.3% return, and Lockheed is positioned right at the center of this boom. The recently enacted “One Big Beautiful Bill Act” injected $156.2 billion in new defense funding available through September 2029, on top of the regular defense budget that exceeds $849 billion annually. With Q3 earnings scheduled for October 21, investors will get fresh insights into how these massive contract wins are translating into financial performance.
Key Technical and Fundamental Drivers
Fresh $24.3B Contract → Just Announced Last Week
The September 29 announcement covers 296 F-35 fighters with deliveries through June 2027, providing significant revenue visibility and production momentum heading into the final quarter of 2025.
Defense Sector Boom → 44% YTD Performance
The S&P Aerospace and Defense Index has returned 44% year-to-date, substantially outperforming the broader market’s 10.3% gain, driven by geopolitical tensions and elevated government spending.
$156B Federal Funding → Multi-Year Tailwind
The OBBB federal budget allocated $156.2 billion for defense priorities available until September 2029, supporting next-generation technologies including hypersonics, drones, and cybersecurity systems.
Earnings Catalyst → October 21 Report
Lockheed reports Q3 2025 earnings in two weeks, providing the market with updated guidance on how recent contract wins and production acceleration are impacting the bottom line.
Global F-35 Demand → 1,230+ Aircraft Delivered
The global F-35 fleet exceeds 1,230 aircraft with over one million flight hours logged, with international partners including Germany and Singapore driving continued expansion of the program.
Market Takeaway Lockheed Martin’s timing couldn’t be better. Last week’s $24.3 billion F-35 contract announcement positions the company to capitalize on what may be the strongest defense spending environment in decades. With the aerospace and defense sector dramatically outperforming the broader market and federal funding locked in through 2029, the fundamental backdrop for defense contractors has rarely been more favorable.
The F-35 program remains Lockheed’s crown jewel, and this latest contract provides substantial revenue visibility stretching into 2027. What’s particularly compelling is that this production momentum comes just ahead of Q3 earnings on October 21, which could provide additional catalysts if management raises guidance or announces additional contract wins. With global tensions driving nations to modernize their air forces and the U.S. prioritizing advanced stealth capabilities, Lockheed’s dominant position in fifth-generation fighter technology offers investors a way to play the secular trend toward defense modernization. Traders might watch for any pre-earnings momentum or use the October 21 report as a potential catalyst for further upside in this red-hot sector.