Lockheed Martin Receives Major Order from the U.S. Department of War

One of the world's largest defense/aerospace contractors, Lockheed Martin, saw its shares surge nearly 9% at one point after the U.S. market opened today, following the company's upward revision of its full-year earnings forecast. As of press time, the stock is up more than 6%. On the news front, Lockheed Martin announced that it has reached a multi-year production and sustainment framework agreement with the U.S. Department of War for the F-35 "Lightning II" fighter jet, covering 850 aircraft to be procured by the United States over the next 10 years, along with related initial spare parts, modification kits, and maintenance and sustainment, and involving international customer orders for Lots 21 through 30. The agreement plans to maintain production at 156 aircraft per year. If the U.S. Congress approves the multi-year procurement authorization and related appropriations, the two sides will further finalize contract terms, pricing, and delivery schedules. The company expects that long-term pricing and bulk procurement discounts could save billions of dollars over the full life cycle of the F-35.