Lockheed Martin To Delay F-35 Fighter Jet Delivery As Stocks Make Significant Drop In Over Four Months

In a recent announcement, Lockheed Martin Corp. (NYSE:LMT) revealed that software issues might cause a delay in the delivery of an upgraded version of its F-35 fighter jets, leading to a significant drop in the company’s stock.

What Happened: The world’s largest weapons manufacturer, Lockheed Martin, disclosed that the delivery of the TR-3 version of the F-35 fighter jets might be postponed until the third quarter, reported Bloomberg on Monday. This announcement led to a 3.9% drop in the company’s stock, the most significant decline in over four months.

The company had previously indicated that the TR-3 version would commence shipping in the second quarter. However, the Pentagon has clarified that it will not accept the upgraded Joint Strike Fighters until all issues with the aircraft’s most extensive and sophisticated software upgrade are resolved.

See Also: Bitcoin, Ethereum, Dogecoin Drop As Google Search Interest In Spot ETFs Plunges: Analyst Foresees King Crypto Below $40K Before April Halving

Lockheed’s shares fell to $440.87 at 12:29 p.m. in New York, marking the largest intraday drop since Sept. 6 and making it one of the leading decliners on the S&P 500.

Why It Matters: The delay in the F-35 fighter jet delivery comes just when Lockheed Martin’s fourth-quarter earnings surpassed estimates. The company’s 2023 sales stood at $18.87 billion, slightly higher than the $17.97 billion consensus.

Despite the setback, Lockheed has predicted a 6.5% decrease in earnings for 2024.

The Pentagon is withholding approximately $7 million in payment to Lockheed for each F-35 in storage, awaiting the upgraded software and cockpit hardware. This technology reboot is expected to enable fighter jets to carry more precise weapons and gather more information on enemy aircraft and air defenses.

Read Next: Elizabeth Warren Strikes Again: Unleashes A Tidal Wave Of Reactions In Crypto Circles

Image via Shutterstock