Home Market News Decline in Lockheed Martin Stock following Report on F-35 Delay

Decline in Lockheed Martin Stock following Report on F-35 Delay

0
Decline in Lockheed Martin Stock following Report on F-35 Delay

Lockheed Martin’s stock experienced a significant drop on Wednesday, falling by 4.7%. This decline came after the U.S. defense contractor revised its delivery forecast for F-35 fighter planes.

The delay in the delivery of an upgraded version of the aircraft was caused by issues at supplier L3Harris Technologies. Lockheed Martin disclosed this information in a regulatory filing.

For this year, the company now plans to deliver 97 jets with existing technology, which is lower than the previous estimated range of 100 to 120 aircraft. However, Lockheed Martin maintained its unchanged financial outlook for the year.

Furthermore, the delivery of the first F-35 with Technology Refresh 3 (TR-3) will be postponed until sometime between April and June, as opposed to the end of this year as initially planned, according to Lockheed Martin.

The regulatory filing states that “The development of the integrated core processor by L3 Harris has driven delays due to unexpected challenges associated with hardware and software development, component and system integration testing, and system qualification testing.” Lockheed Martin also noted that the number of F-35 deliveries in 2024 will depend on the timing of the first TR-3 aircraft delivery and the completion of the customer’s acceptance process. Updates will be provided as the test plan progresses.

In response to this update, L3Harris’s stock also experienced a decline, dropping by 1.4% on Wednesday.