Lockheed Martin Faces $800M Payment Delay Over F-35 Software Approval: Report
Portfolio Pulse from Anusuya Lahiri
Lockheed Martin Corp (NYSE:LMT) could face a delay in receiving over $800 million in payments until June as it awaits approval for software crucial to its advanced F-35 fighter jet. The Pentagon has decided to withhold $7 million per aircraft until the new software receives validation. The software upgrade is necessary to fully utilize new cockpit hardware, enabling the jet to carry more precise weapons and gather enhanced information on enemy aircraft and air defenses. Lockheed Martin is continuing production of F-35s while working on finalizing the software and hardware integration.
September 11, 2023 | 4:12 pm
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Lockheed Martin's payment delay could potentially impact its cash flow in the short term. However, the company is continuing production and working on finalizing the software and hardware integration, which could mitigate some of the potential negative impact.
The delay in payment could potentially impact Lockheed Martin's cash flow in the short term. However, the company's continued production and work on the software and hardware integration could help mitigate some of this potential negative impact. The company's stock price fell by 1.31% on the news, indicating that the market is reacting to the news.
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