According to a report by Reuters, Lockheed Martin has signed an initial production and sustainment agreement with the US Department of Defence covering 850 F-35 Lightning II fighter jets over the next decade.

The arrangement, announced on Thursday, represents a pre-arranged long-term framework between the company and the US Department of Defence. While it does not constitute a formal aircraft order, it establishes the basis for future procurement, sustainment and support activities linked to the F-35 program.

The F-35 Lightning-II, regarded as the world's most advanced operational fighter aircraft, is equipped with stealth technology designed to reduce detection by enemy radar and air-defence systems. The platform remains central to Lockheed Martin's aeronautics business, which accounts for nearly 40% of the company's quarterly revenue.

Under the agreement, Lockheed Martin intends to sustain annual production at 156 aircraft. The package also covers international F-35 orders as well as initial spare parts and modification kits required by operators.

The company said: "If granted multi-year authority in the coming months, the F-35 Joint Program Office and Lockheed Martin will work to finalise contract terms, pricing and schedules through a formal contract award." This indicates that additional approvals are still required before a definitive contract can be concluded.

The F-35 program is one of the largest military aircraft initiatives in history, serving the United States and a growing number of allied nations. The jet is available in three variants designed for conventional operations, short take-off and vertical landing missions, and aircraft carrier deployments, making it a cornerstone of Western air power.

Lockheed Martin said the agreement is expected to support approximately 3,17,000 jobs across the United States while generating nearly $79 billion in annual economic activity over the next ten years. 

The company also believes the long-term arrangement will help reduce production costs and alleviate supply-chain pressures affecting everything from raw materials to finished components.

The deal comes amid rising global military expenditure and sustained demand for advanced combat aircraft as geopolitical tensions continue across multiple regions. Defence contractors, including Lockheed Martin, have benefited from increased government spending focused on military modernisation, readiness and strategic deterrence.

Agencies