Lockheed Martin slashes aircraft delivery outlook, shares tumble

Points to remember

Lockheed Martin lowered its estimate for F-35 deliveries this year and pushed back its forecast for the first deliveries of its updated TR-3 jet.
The company expects 97 F-35 deliveries. 35 this year, down from its previous forecast. 100-120.
Lockheed Martin shares fell 4.8% on Wednesday to their lowest level in 11 months.

Lockheed Martin (LMT) has warned that it will deliver less than F-35 jet fighters than expected and that the first of its updated Technology Refresh (TR-3) aircraft would not be ready until next year.

Defense contractor explained in a regulatory filing that it planned to deliver 97 F-35s in 2023, down from its previous estimate of 100 to 120. It also said the initial delivery of the TR-3s would take place between April and June 2024 .expected it to happen this year.

The company added that the total number of F-35 deliveries next year will depend on when the first TR-3s are delivered, as well as how long it takes to complete the customer acceptance process. . Lockheed Martin continues to assess the impact this will have on its business in 2024, the company said.

The company explained that it was producing F-35s at a rate of 156 per year and plans to continue at that rate as it works to finalize TR-3 software and development.

The F-35 is the the company's largest program. Sales jumped $735 million in the second quarter, accounting for about three-quarters of the overall revenue increase for Lockheed Martin's aerospace unit.

Lockheed Martin shares have fell 4.8% on Thursday to their lowest level since last October.