Lockheed Martin Resumes Delivery Of F-35 Jets, But US Government To Withhold Some Payment Putting Profit Margins Under Pressure
Portfolio Pulse from Vandana Singh
Lockheed Martin has resumed F-35 jet deliveries to the U.S. military, but the U.S. government is withholding $5 million per jet until a technology upgrade is completed. This impacts Lockheed's profit margins, as the F-35 program is a significant part of their sales. The company aims to deliver 100 jets this year and over 150 by 2025.
August 30, 2024 | 1:46 pm
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Lockheed Martin has resumed F-35 deliveries, but the U.S. government is withholding $5 million per jet until a technology upgrade is completed, impacting profit margins. The F-35 program is crucial, contributing 27% of sales.
The withholding of payments by the U.S. government due to delayed technology upgrades directly impacts Lockheed Martin's profit margins. Given that the F-35 program is a significant part of their sales, this financial pressure is likely to affect the stock negatively in the short term.
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