by Tyler Hale
Lockheed Martin and the Pentagon may be closing in the biggest contract yet for F-35 jets, Bloomberg reports.
According to the report, Lockheed Martin’s new deal is worth approximately $34 billion to deliver 478 fighter planes. Bloomberg cited three unidentified individuals who claim to have knowledge of the deal.
An announcement of the agreement, the sources say, is set to take place after the markets close on Monday or on Tuesday morning.
This is an abrupt turnaround for the F-35. Only last week, Reuters reported that the Pentagon was not ready to move into a production contract with Lockheed Martin for the jets. The Pentagon said at the time that their decision could be delayed until 2021 due to issues integrating the F-35 with its testing stimulators.
“We are not making as quick progress on the joint simulation environment, integrating the F-35 into it,” Pentagon acquisition chief Ellen Lord told Reuters.
The company’s stock has risen slightly today (Oct. 28) to $371.84 (as of press time) from a start of $371.35.
Lockheed Martin stock (Oct. 28)
Since the beginning of 2019, though, Lockheed Martin’s stock has risen significantly. The stock was valued at $264.73 on Jan. 2, and has steadily increased in valuation, with intermittent dips, since that time.
This will mark another major contract for the Bethesda, Md.-based company after receiving a $108 million contract from the U.S. Air Force on Wednesday, Oct. 16. The contract is to develop a reentry vehicle program for delivering the W87-1 warhead from the Ground Based Strategic Deterrent Weapon System.
Lockheed Martin stock (Oct. 2018-Oct. 2019)
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