Stock Markets July 23, 2026 05:47 PM

Lockheed Martin Secures $67.7M in U.S. Navy and F-35 Depot Contracts

Awards cover submarine electronic warfare production material and F-35 depot activation services for allied customers

By Ajmal Hussain
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Lockheed Martin received two Department of Defense orders totaling $67.7 million. The contracts fund technical insertion-26 production material for submarine electronic warfare systems and engineering, depot activation and material lay-in to establish F-35 national air vehicle depots for foreign military sales customers, with work to be completed by December 2028 and July 2029 respectively.

Lockheed Martin Secures $67.7M in U.S. Navy and F-35 Depot Contracts
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Key Points

  • Lockheed Martin received two Department of Defense orders totaling $67.7 million for submarine electronic warfare production material and F-35 depot activation support.
  • The Naval Sea Systems Command awarded a not-to-exceed $44.6 million delivery order for technical insertion-26 production material, with work concentrated in Syracuse, New York, and completion expected by July 2029.
  • The Naval Air Systems Command awarded a $23.08 million cost-plus-fixed-fee order to establish F-35 national air vehicle depots for foreign military sales customers, with work split across sites in the U.S., Korea, Switzerland and Finland and completion expected by December 2028.

Lockheed Martin Corp. was awarded two Department of Defense contracts that together total $67.7 million, according to announcements from U.S. Navy contract offices. The awards cover production material for submarine electronic warfare systems and support to activate F-35 national air vehicle depots for foreign military sales customers.

The first award, issued by the Naval Sea Systems Command, is a not-to-exceed $44.6 million cost-plus-incentive-fee delivery order. It is designated for technical insertion-26 production material intended for submarine electronic warfare systems, and applies to both new construction and in-service submarines. The work locations and associated effort percentages are listed as Syracuse, New York (97%); La Mesa, Mexico (2%); and Orlando, Florida (1%). The contract lists an expected completion date of July 2029.

At the time of award the Navy obligated specific appropriations across fiscal years and budget categories: $8.97 million in fiscal 2026 shipbuilding and conversion funds, $5.78 million in fiscal 2026 other procurement funds, $4.49 million in fiscal 2025 shipbuilding and conversion funds, and $3.08 million in fiscal 2025 other procurement funds. The announced funding will not expire at the end of the current fiscal year.

The second award was made by the Naval Air Systems Command and is a $23.08 million cost-plus-fixed-fee order. That order covers engineering and technical services, depot activation support, and material lay-in to establish F-35 national air vehicle depots for foreign military sales customers. Explicitly identified support under this order includes depot maintenance activation plans for Finland and Switzerland, as well as depot activation services and initial induction material for the Republic of Korea.

Work on the F-35 depot activation order is divided across multiple locations with percentages of work noted: Fort Worth, Texas (68%); Cheongju, Korea (17%); Emmen, Switzerland (6%); Halli, Finland (6%); Seoul, Korea (2%); and Helsinki, Finland (1%). The contract lists expected completion by December 2028. The full $23.08 million in foreign military sales customer funds were obligated at the time of award.

Combined, the two orders amount to $67.68 million in new obligations to Lockheed Martin for defence production material and depot activation services. The published details specify tasking, funding sources and geographic distribution of the work, along with expected completion windows later this decade.


Contextual note: The contracts enumerate where work will be performed, the funding categories and amounts obligated at award, and the projected completion dates for each order. No additional financial projections or operational outcomes were provided in the contract notices.

Risks

  • Timing uncertainty tied to contract completion windows - the submarine systems order is expected to conclude by July 2029 and the F-35 depot work by December 2028, which could affect scheduling and resource allocation in the defense and aerospace sectors.
  • Reliance on specific appropriations and foreign military sales customer funds - the submarine work lists multiple fiscal year funding buckets and the F-35 order is fully funded by foreign military sales customer funds at award, which could influence budget planning in defense procurement.
  • Concentrated geographic execution - a large share of the submarine contract work is slated for a single location (Syracuse, New York at 97%), and the F-35 depot work is concentrated in Fort Worth, Texas (68%), creating operational dependency on those sites within the aerospace and defense supply chain.

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