Lockheed Martin, Pentagon reach agreement to reduce cost of F-35A by 12.8%

Lockheed Martin (NYSE: LMT) has announced it has reached an agreement with the Pentagon´s F-35 joint program office, finalizing a USD 34 billion agreement for the production and delivery of 478 F-35s at the lowest aircraft price in the history of the program, the company said.

This contract includes all US, International Partners and Foreign Military Sales aircraft in Lots 12, 13 and 14.

In the agreement, the F-35 Enterprise meets and exceeds its long-stated cost reduction targets for each variant — and the F-35A unit price, including aircraft and engine, is now below USD 80 million in both Lot 13 and Lot 14, the F-35A unit cost represents an estimated overall 12.8 percent reduction from Lot 11 costs for the conventional landing variant, and an average of 12.7 percent savings across all three variants from Lot 11 to 14.

The agreement includes 291 aircraft for the US Services, 127 for F-35 International Partners, and 60 for F-35 Foreign Military Sales customers.

Lockheed Martin is a global security and aerospace company that employs approximately 105,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.