The United States has reached a preliminary 10-year framework agreement with Lockheed Martin for at least 850 additional F-35 Lightning II fighter jets, marking a major long-term commitment to the stealth aircraft. Announced on October 22, 2026, the agreement covers aircraft production, initial spare parts, modification kits and sustainment of the wider F-35 fleet. It is intended to give manufacturers and suppliers greater certainty while helping the Pentagon control costs and improve aircraft availability.
The agreement is not yet a final procurement contract, and the Pentagon has not disclosed a total contract value. The framework targets annual production of 156 aircraft and requires Lockheed Martin to self-fund at least $7 billion in supporting initiatives. Final pricing, schedules and contractual terms remain subject to further work, including the required multi-year procurement authority and funding. The deal also comes as the F-35 programme faces scrutiny over rising costs, combat-readiness rates and delays to major technology upgrades.
Key Takeaways
- At least 850 aircraft: The framework covers 850 additional F-35s for the US over 10 years.
- Annual production target: The programme is expected to maintain a production rate of 156 aircraft annually.
- Contract value undisclosed: The Pentagon has not announced a final price for the framework.
- Lockheed investment: The company will self-fund at least $7 billion in supporting initiatives.
- Broader coverage: The arrangement includes initial spare parts, modification kits, sustainment and international customer orders.
- Industrial impact: Lockheed estimates the framework could support 317,000 US jobs and generate nearly $79 billion in annual economic activity over the next decade.
- Not yet final: Contract terms, pricing and schedules still need to be finalised, subject to the required authority and appropriations.
1. What Does the 850-Jet F-35 Agreement Include?
The new framework is designed to replace the uncertainty associated with shorter procurement cycles with a longer-term production and support arrangement.
The F-35 programme has traditionally relied on contracts covering groups of production lots. A 10-year framework would give Lockheed Martin and its suppliers a clearer view of future demand, helping them plan factory capacity, purchase materials and invest in manufacturing equipment.
The agreement covers at least 850 aircraft for the US over the coming decade. It also includes initial spare parts and modification kits, along with sustainment support for the global F-35 fleet. International customer orders are included in the broader production framework.
| Agreement detail | Reported provision |
|---|---|
| Aircraft commitment | At least 850 US aircraft |
| Contract period | 10 years |
| Planned production rate | 156 aircraft annually |
| Supporting equipment | Initial spare parts and modification kits |
| Maintenance and support | Global fleet sustainment |
| Lockheed Martin investment | At least $7 billion in self-funded initiatives |
| Total contract value | Not disclosed |
| Status | Preliminary framework; formal award pending |
The inclusion of parts and sustainment is important because aircraft availability depends on more than production. A fighter jet can be delivered to a military unit but remain unavailable for missions if replacement components, maintenance capacity or software upgrades are delayed.
2. Why Is the Pentagon Pursuing a Long-Term Deal?
The US government wants to make its defence industrial base more predictable and responsive. Long-term commitments can encourage manufacturers to invest in additional production capacity and allow suppliers to plan purchases of specialised components in larger quantities.
For the F-35, the approach is intended to address supply-chain bottlenecks and improve the availability of spare parts. Greater visibility into future demand can help suppliers avoid production interruptions and reduce the risk of components becoming scarce when aircraft need repairs.
The arrangement also seeks to improve cost predictability. If manufacturers can order materials and schedule production over a longer period, they may be able to capture volume discounts and reduce some expenses associated with repeated contracting cycles.
However, these benefits are not automatic. Savings depend on the final contract structure, production efficiency, supplier performance and the government’s ability to fund the agreed purchases. The proposed framework therefore sets out a direction for future procurement rather than guaranteeing a specific reduction in the price of each aircraft.
3. What Is Lockheed Martin Expected to Invest?
Lockheed Martin has committed to self-fund at least $7 billion in initiatives supporting the F-35 programme.
The investment is intended to help expand capacity, improve manufacturing efficiency and strengthen the supply chain. It also supports the company’s broader effort to make production more predictable and improve the availability of components required for aircraft maintenance.
The commitment is notable because the F-35 relies on a large network of suppliers providing engines, electronics, sensors, structural components and other specialised systems. Delays in any part of this network can affect aircraft deliveries and maintenance schedules.
Lockheed Martin has argued that greater certainty from the government will allow it and its suppliers to make investments that would be harder to justify under shorter-term purchasing arrangements.
The company’s investment commitment should not be confused with the government’s procurement spending. The $7 billion represents Lockheed’s planned self-funded initiatives, while the total amount the Pentagon will pay for the aircraft and associated services has not yet been announced.
4. How Much Could the F-35 Deal Be Worth?
The Pentagon has not disclosed the total value of the new framework. Although the F-35 is a costly aircraft, multiplying a published per-aircraft price by 850 would not produce a reliable estimate of the contract value.
The programme has three main variants, each designed for different operating requirements. Their costs vary depending on the aircraft configuration, production lot and the treatment of engines, equipment, spare parts and support services.
Recent figures reported by Air & Space Forces Magazine put average flyaway costs for Lots 18 and 19 at approximately $92 million for the F-35A, $121.4 million for the F-35B and $110.8 million for the F-35C. Flyaway cost is not the same as the total lifecycle cost of owning and operating an aircraft.
The new framework includes more than aircraft production. It also covers spare parts, modification kits and sustainment, meaning its eventual value will depend on the final scope and pricing of those elements.
The formal contract award should provide greater clarity on the financial commitment and the schedule for deliveries.
5. The F-35 Programme Still Faces Readiness and Upgrade Challenges
The new agreement comes despite ongoing questions about the F-35’s operational availability and modernisation schedule.
The programme has faced delays involving Technology Refresh 3 (TR-3), a hardware and software upgrade intended to support more advanced capabilities. Delays have affected the delivery and acceptance of upgraded aircraft, while spare-parts shortages and maintenance constraints have also been concerns.
The Pentagon’s long-term production plan is therefore linked to a broader effort to ensure that aircraft can be maintained, upgraded and returned to service more efficiently.
The F-35 is designed to combine stealth, advanced sensors, electronic warfare systems and networked information-sharing capabilities. Those systems make it a complex aircraft to develop and maintain, especially as new software and weapons capabilities are introduced.
Increasing the number of aircraft produced does not, by itself, resolve these challenges. The Pentagon and Lockheed Martin will also need to ensure that the support system can keep pace with fleet growth and that upgrades deliver the intended operational capabilities.
6. What the Deal Means for Lockheed Martin and Its Suppliers
The F-35 is a central product within Lockheed Martin’s aeronautics business. A long-term framework could give the company and its suppliers greater visibility into future demand, supporting production planning and investment decisions.
Lockheed estimates that the agreement could support 317,000 US jobs and generate nearly $79 billion in annual economic activity over the next decade. These are company estimates of the broader economic impact, not a guarantee of newly created jobs or additional government revenue.
The arrangement could also benefit suppliers that need to invest in tooling, specialised materials and manufacturing capacity. Predictable demand can make those investments easier to plan, although individual suppliers will still face cost, delivery and execution risks.
For Lockheed Martin, the key commercial question is whether the longer-term structure can improve efficiency while meeting the government’s expectations on affordability and performance. The contract’s eventual terms will determine how production and sustainment obligations translate into revenue and profitability.
7. Why Congressional Approval Still Matters
The framework does not remove the US Congress from the procurement process. Multi-year defence contracts require the relevant legal authority and funding arrangements, and the parties must finalise terms before a formal award.
Congressional decisions on defence budgets can affect the timing and scale of aircraft purchases. Changes in appropriations, programme priorities or oversight requirements could influence the final contract structure.
The distinction between a framework and a final order is therefore important. The agreement signals an intended long-term commitment, but the precise schedule, pricing and legally funded obligations still need to be established.
The final contract will show how the framework is translated into actual procurement and support commitments.
The Bigger Picture
The F-35 agreement reflects a broader US defence strategy of using longer-term purchasing arrangements to stabilise production and strengthen supply chains. For a complex programme involving thousands of suppliers, greater certainty can support investment in manufacturing capacity and help reduce delays caused by shortages of critical components.
At the same time, the programme must demonstrate that increased production translates into aircraft that are ready, supportable and equipped with the required capabilities. The agreement’s significance will ultimately depend on the final terms, the delivery schedule, the effectiveness of sustainment and the Pentagon’s ability to manage costs across the aircraft’s lifecycle.
FAQs
1. How many F-35 fighter jets will the US buy under the new framework?
The framework covers at least 850 additional aircraft for the US over 10 years. The final procurement contract has not yet been awarded.
2. What is the total value of the F-35 deal?
The Pentagon has not disclosed a total value. Final pricing and schedules will be negotiated as the parties work towards a formal contract award.
3. How many F-35s will Lockheed Martin produce each year?
The framework targets an annual production rate of 156 aircraft. The wider arrangement also covers international orders and support for the global fleet.
4. What is Lockheed Martin contributing to the agreement?
Lockheed Martin will self-fund at least $7 billion in supporting initiatives intended to expand production capacity, improve efficiency and strengthen the supply chain.
5. Is the F-35 contract final?
No. The framework is preliminary. Final terms, pricing and schedules remain subject to further work, including the required multi-year authority and appropriations.
Looking Ahead
The next major milestone will be the finalisation of contract terms and the formal award. That process will clarify the total financial commitment, the schedule for production and how aircraft purchases are linked to spare parts, modifications and sustainment. Congressional authorisation and funding decisions will remain important to the final structure.
For Lockheed Martin, the agreement could provide a more predictable foundation for production and supplier investment. For the Pentagon, its success will depend on whether the long-term arrangement improves affordability and aircraft readiness while delivering the required capabilities. The number of aircraft ordered is significant, but execution and operational availability will be the more important measures of the programme’s performance.
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