Stock Markets June 12, 2026 05:18 PM

Lockheed Martin Secures $2.8 Billion in Defense Awards for F-35 Sustainment and CH-53K Work

Two Department of War contracts cover initial F-35 sustainment set-up and CH-53K development and flight-test support

By Sofia Navarro
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Lockheed Martin received two U.S. Department of War contracts totaling about $2.8 billion: a $2.29 billion indefinite-delivery/indefinite-quantity agreement for initial, non-recurring F-35 sustainment activities and up to $525 million for Sikorsky-led CH-53K engineering and flight-test support. Work locations, percentages, and completion dates were specified, and funds will be obligated on individual orders.

Lockheed Martin Secures $2.8 Billion in Defense Awards for F-35 Sustainment and CH-53K Work
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Key Points

  • Two Department of War contracts to Lockheed Martin total approximately $2.8 billion.
  • $2.29 billion contract is for initial non-recurring F-35 sustainment activities and services; up to $525 million contract to Sikorsky covers CH-53K engineering and flight-test support.
  • Work locations and completion dates are specified: F-35 work mainly in Fort Worth, Texas and Orlando, Florida (completion December 2028); CH-53K work mainly in Stratford, Connecticut and West Palm Beach, Florida (completion June 2031).

Lockheed Martin Corp. has been awarded two contracts by the U.S. Department of War together valued at roughly $2.8 billion, according to the announcement. The agreements split into a larger program focused on F-35 Lightning II sustainment activities and a separate award for development work on the Y/CH-53K Heavy Lift Helicopter.

The principal award is a $2.29 billion cost-plus-incentive-fee, indefinite-delivery/indefinite-quantity contract that covers initial non-recurring sustainment activities and services for the F-35 Joint Strike Fighter. The scope listed in the announcement includes site activation, interim contractor support, fleet management, and reliability and maintainability improvement plans intended to establish new operational sites. It also covers the one-time set-up of land-based and at-sea fleet support operations for the Air Force, Marine Corps, Navy, Foreign Military Sales customers, and F-35 Cooperative Program Partners.

A separate contract, awarded to Sikorsky Aircraft Corp., a Lockheed Martin subsidiary, is worth up to $525 million. That agreement is structured as a combination of firm-fixed-price and cost-plus-fixed-fee terms. It covers non-recurring engineering, integration, and flight-test support for both development and modernization efforts on the Y/CH-53K Heavy Lift Helicopter program, with identified customers including the Marine Corps, Navy, and a Foreign Military Sales customer.

The announcement specified where work will be performed and provided completion targets. Under the F-35 sustainment agreement, approximately 85% of the work will take place in Fort Worth, Texas, and 15% in Orlando, Florida, with an expected completion in December 2028. For the CH-53K work, the bulk of activity - 65.2% - will be carried out in Stratford, Connecticut, while 19.93% will be carried out in West Palm Beach, Florida, and the contract is expected to conclude in June 2031.

According to the release, no funds will be obligated at the time of award for either contract. Instead, funds will be obligated on individual orders as those orders are issued. Naval Air Systems Command, Patuxent River, Maryland, was named as the contracting activity administering both agreements.


Context and implications

The two awards cover distinct phases of program work: one focuses on one-time, initial sustainment activities and site set-up for an operational fighter fleet, while the other funds engineering, integration, and flight-test support tied to a heavy-lift helicopter program. The contracts identify specific service customers and a Foreign Military Sales customer for the CH-53K work.

Risks

  • No funds were obligated at the time of award; funding will depend on individual orders being issued, which could delay cash flow - impacts procurement and defense contracting sectors.
  • The contracts include non-recurring and one-time set-up activities; delays or challenges in site activation or integration could affect program timelines - implications for program management and defense suppliers.
  • The CH-53K award is contingent on engineering, integration, and flight-test support phases; technical or test-related setbacks could alter expected delivery or modernization schedules - relevant to aerospace manufacturing and testing operations.

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