Lockheed Martin's F-35 Availability Plummets to 50%, Impacting Military Budget
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Newsfilter
- Availability Decline: According to the Defense Department's Inspector General report, the F-35 aircraft's availability in 2024 was only 50%, which is 17% below the minimum performance requirement, indicating significant maintenance shortcomings by Lockheed Martin that directly affect military operational capabilities.
- Economic Loss: Despite the inadequate availability of F-35s, the Pentagon paid Lockheed approximately $1.7 billion without any economic adjustments, reflecting a management failure in contract execution and performance accountability that may lead to a reevaluation of future budgets.
- Contract Execution Issues: The audit revealed that the Pentagon failed to include measurable contract requirements such as aircraft readiness performance in the AVS contract and did not enforce material inspection and government property reporting requirements, which could necessitate adjustments in future procurement and maintenance strategies.
- Long-term Impact: The F-35 program is the Pentagon's largest acquisition initiative, with lifetime costs estimated to exceed $2 trillion, and the current maintenance issues may influence future procurement decisions and defense budget allocations, thereby impacting the overall enhancement of military capabilities.
LMT
$482.55+Infinity%1D
Analyst Views on LMT
Wall Street analysts forecast LMT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LMT is 544.18 USD with a low forecast of 500.00 USD and a high forecast of 630.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
5 Buy
6 Hold
0 Sell
Moderate Buy
Current: 483.570
Low
500.00
Averages
544.18
High
630.00
Current: 483.570
Low
500.00
Averages
544.18
High
630.00
About LMT
Lockheed Martin Corporation is a global aerospace and defense company. The Company is engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. Its segments include Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. Aeronautics segment is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft. MFC segment provides air and missile defense systems, manned and unmanned ground vehicles, energy management solutions, and others. RMS segment designs, manufactures, services and supports various military and commercial helicopters, surface ships, sea and land-based missile defense systems, and others. Its Space segment is engaged in the research and design, development, engineering and production of satellites, space transportation systems, and strategic, advanced strike, and defensive systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
