A Lockheed Martin F-35 Lightning II multirole combat airplane of the United States Air Force at Ramstein Air Base, Germany. (Photo by Thomas Lohnes/Getty Images)
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To date, Lockheed Martin has delivered more than 1,200 F-35 Lightning II fifth-generation multirole fighter to the United States, its allies, and partners around the world. The stealth aircraft is now in full-rate production (FRP), and this week the aerospace firm and the F-35 Joint Program Officer confirmed that an agreement had been reached for Lots 18 and 19, which will deliver nearly 300 additional stealth fighters.
The new production contract for 296 F-35s will include aircraft for the US military and Foreign Military Sales (FMS) customers, with delivery of the latest Lightning IIs to begin in 2026.
“The F-35 Lot 18-19 contract represents continued confidence in the most affordable and capable fighter aircraft in production today,” said Chauncey McIntosh, vice president and general manager of the F-35 Lightning II program at Lockheed Martin. “We are proud to support our customers and further solidify the F-35’s role in enabling peace through strength.”
The F-35 program accounts for around 30 percent of the company’s annual revenue.
Costs Going Up
Lockheed Martin and the JPO acknowledged that the cost of the aircraft had increased with Lots 18 and 19, but maintained that it was “was less than the rate of inflation.” Several factors contributed to the increased costs, including global inflation, increased costs for raw materials, and continued supply chain disruptions.
The current contract modification, announced on Monday, is valued at $12.5 billion, in addition to the $11.8 billion agreed upon last December between the aerospace giant and the U.S. Department of Defense (DoD) for Lot 18. The total cost for the 296 aircraft—148 from each Lot—is approximately $24.3 billion, which translates to an average price of $82.1 million for the F-35.
The finalized deal came down to the wire, as the DoD’s fiscal year ended on September 30.
The F-35 JPO didn’t break down the cost of the aircraft by variant, but as Air & Space Forces Magazine reported, “the Air Force F-35A model is significantly less costly than the more complex short-takeoff/vertical landing F-35B and larger, carrier-capable F-35C for the Navy.”
Engines Not Included
It should be noted too that the cost of the F-35 doesn’t include the F135 engines, produced by RTX subsidiary Pratt & Whitney, a subsidiary of RTX, and contracted separately. A deal reached in August for 141 engines for Lot 18 put the average cost of the F135 at $20.4 million, a sharp increase from the $14 to $15 million per engine from Lot 17.
Including the engines, the flyaway cost of the Lot 18-19 F-35s will exceed $100 million.
The increased cost was due to the update of the F135 Engine Core Upgrade (ECU), which was required to meet the increased power and cooling demands of the Lightning II’s Technology Refresh 3 (TR-3) and Block 4 capabilities. Lockheed Martin has yet to release a finalized version of the long-delayed TR-3, but said it would arrive later this year.
Where Are the F-35s Headed?
In 2024, Lockheed Martin delivered 110 F-35 Lightning IIs in all configurations to the US military and its allies and partners.
Earlier this year, the Pentagon scaled back its orders, with the U.S. Air Force requesting 24 of the F-35A models, the conventional takeoff and landing version. The U.S. Navy and the United States Marine Corps reduced their respective orders, with the sea service requesting just 12 of the F-35C, the carrier-based variant, down from the previously approved 17. The USMC has reduced its request by two F-35s; it operates both the F-35C and the F-35B, the short takeoff and vertical landing (STOVL) model.
For Lot 19, which will be part of the fiscal year 2026 (FY26) budget, the U.S. Air Force is set to receive 40 F-35As, with 12 F-35Bs and eight F-35Cs destined for the U.S. Marine Corps, and nine more F-35Cs for the U.S. Navy. A baker’s dozen of 13 F-35As and two F-35Bs will be produced for program partners, while 52 F-35As and 12 F-35Bs will be for FMS customers.