LMT - Team Biden Plans 18% Reduction In Lockheed Martin's F-35 Fighter Jet Orders For 2025 Due To Budget Constraints: Report | Benzinga
The Biden administration is reportedly planning to slash the number of F-35 fighter jets ordered from Lockheed Martin Corporation (NYSE:LMT) by 18% in the upcoming 2025 budget. This decision comes as a result of Congress imposing a limit on the size of the defense budget.
What Happened: Based on unnamed sources, Reuters reported that President Joe Biden aims to reduce the Pentagon’s order for Lockheed Martin’s F-35 stealthy fighter to below 70, down from the anticipated 83. This would result in an approximate $1.6 billion reduction in jet spending.
The decreased F-35 orders could have implications for Lockheed Martin, which derives roughly a quarter of its revenue from the jet program. Despite this, the international demand for the jets remains strong, with each aircraft costing between $80 million to $120 million, depending on the type.
Lockheed Martin’s shares dropped ...