Lockheed Expands F-35 Program on Record $194B Backlog

F-35 Expansion Follows Record $194 Billion Backlog

Lockheed Martin announced on March 12, 2026, that it is expanding its F-35 fighter jet capabilities by integrating advanced weaponry and new data-sharing systems. This strategic enhancement is a direct response to growing global demand for combat aircraft and is built on a foundation of significant financial strength. The company ended 2025 with a record $194 billion order backlog, providing clear, multi-year revenue visibility. The F-35 program itself is a core growth driver, generating approximately 27% of Lockheed's total consolidated net sales in 2025.

The decision to invest further in the F-35 platform is also bolstered by a dramatic operational turnaround in other key divisions. The company's Missiles and Fire Control segment swung from an $804 million operating loss in the fourth quarter of 2024 to a $535 million profit in the fourth quarter of 2025. This financial momentum is reflected in the company's aggressive production targets, with F-35 deliveries projected to increase from 110 aircraft in 2024 to 191 in 2025.

Stock Gains 43.6% Yet Trades at Sector Discount

Lockheed Martin's shares have gained 43.6% over the past three months, strongly outperforming the 12.3% growth of the broader Zacks Aerospace-Defense industry. This investor confidence stems from a wider, multi-year capital expenditure cycle across the defense sector, where contract assurances from the Department of Defense are enabling massive investment from primary contractors. The company reinforced this positive outlook by guiding for 2026 revenue between $77.5 billion and $80 billion, citing what its CEO called "unprecedented demand."

Despite the strong share price appreciation, the stock's valuation presents a nuanced picture for investors. Lockheed Martin operates with a total debt-to-capital ratio of 76.35%, significantly higher than the industry average of 51.29%. However, the company's stock trades at a forward 12-month price-to-sales ratio of 1.96x, which represents a considerable discount to the industry's average of 2.78x. This suggests that even with its recent run-up, the stock may still offer value relative to its sales growth potential.