Facing budget constraints and shifting priorities, the US military significantly reduced F-35 orders, impacting Lockheed Martin’s stock and signaling a potential pivot toward next-gen fighter technologies.
Shares of aerospace giant Lockheed Martin took a hit on Wednesday after it was revealed that the United States Department of Defense (DoD) was cutting its orders for the fifth-generation F-35 Lightning II. The US Air Force slashed its order by half in its budget request to Congress.
Bloomberg reported that the F-35 is the world’s largest weapons platform.
The Pentagon Now Requests Fewer F-35s
According to a Pentagon procurement request document sent to US lawmakers, the Air Force, which remains the largest customer of stealth aircraft, has requested 24, down from the 48 forecasted last year. The Air Force operates the F-35A, the conventional takeoff and landing (CTOL) variant.
The US Navy and United States Marine Corps also scaled back their orders. The sea service requested just 12 of the F-35C, the carrier-based variant, down from the previously approved 17. The USMC has cut its request by two F-35s; it operates both the F-35C and the F-35B, the short takeoff and vertical landing (STOVL) model.
The exact numbers could still change, with lawmakers determining that the services should receive additional aircraft.
“The Pentagon is funded under a stopgap measure because Congress did not approve a spending bill for the agency,” Bloomberg also reported.
Last year, Lockheed Martin delivered 110 F-35 Lightning IIs in all configurations to the US military and its allies and partners. The program accounts for around 30 percent of the company’s annual revenue. Lockheed Martin shares fell 4.2 percent on Wednesday, a decline below their 50-day moving average. The stock is also down 6 percent for the year.
Did Elon Musk and Laura Loomer Cut the F-35 Order?
Although the F-35 has been criticized for years, with detractors arguing it is too costly and lacks the capabilities needed for a conflict with a near-peer adversary such as China and Russia, the Lightning II is also the most successful fifth-generation fighter built to date. More than 1,100 have been delivered to customers. It is now operated by over a dozen allies and partners worldwide, making it one of the most widely adopted post-Cold War military aircraft.
Yet, it has also been in the crosshairs of some very vocal critics.
Last November, tech entrepreneur Elon Musk praised Chinese drones on his X social media platform, while suggesting only “idiots” were still building manned fighters like the F-35. More recently, online provocateur Laura Loomer posted on X, “The F-35 fiasco, it’s time to shine a spotlight on a scandal that’s quietly draining our nation’s resources while compromising our military readiness every day.”
It is unclear what Loomer based her stance on, including how the aircraft may have compromised the Pentagon’s readiness. However, both Loomer and Musk (until recently) had the ear of President Donald Trump, who also called for the production of an upgraded twin-engine version of the F-35. Aviation experts have indicated that such an aircraft, which Trump said could be designated the F-55, is unrealistic and would require a complete redesign.
Is the Military Waiting for the F-35+?
The cutbacks also come just months after Boeing was awarded the contract to build the sixth-generation manned fighter, the centerpiece of the Air Force’s Next Generation Air Dominance (NGAD) program. The program calls for a system of systems that includes unmanned aerial vehicles (UAVs) to operate alongside the manned fighter.
Although Lockheed Martin opted not to protest the contract award, company CEO Jim Taiclet suggested in an April earnings call with investors that the aerospace firm would further supercharge the F-35, delivering what he said would be a “fifth-generation-plus” aircraft. Taiclet proposed that the more advanced aircraft would have 80 percent of the capabilities of a sixth-generation fighter but at a fraction of the cost.
The Pentagon has opted to wait for those upgrades to materialize. However, it should be noted that Lightning II has yet to finalize its Technology Refresh-3 (TR-3), the long-overdue software and hardware upgrade that led the DoD to halt acceptance of the F-35 two years ago. Only last year, after a truncated version of the TR-3 was released, deliveries resumed.
Finally, while the Pentagon has cut its orders, it could be good news for the other F-35 buyers, as those nations may move up the line.
About the Author: Peter Suciu
Peter Suciu has contributed over 3,200 published pieces to more than four dozen magazines and websites over a thirty-year career in journalism. He regularly writes about military hardware, firearms history, cybersecurity, politics, and international affairs. Peter is also a Contributing Writer for Forbes and Clearance Jobs. He is based in Michigan. You can follow him on Twitter: @PeterSuciu. You can email the author: [email protected].
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