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Lockheed Martin Corp. will deliver fewer F-35 fighter jets this year than initially forecast as supply-chain snags and delays in the development of technology for its next generation of F-35s have slowed overall production.
The Bethesda defense and aerospace giant (NYSE: LMT) said Wednesday it expects to deliver 97 F-35s using existing technology in 2023, down from earlier forecasts of 100 to 120 planes. It also said that the first of its next-generation F-35s won't be delivered until the second quarter of next year. It had previously projected that the first of its so-called F-35 TR-3 jets would deliver by the first of the year.
Lockheed disclosed the delays in a regulatory filing Wednesday afternoon. Its shares fell 4.8% Wednesday to close at $423.94, but were up slightly in premarket trading Thursday.
The delays are tied to snags in the development of an integrated core processor by Melbourne, Florida-based supplier L3 Harris Technologies (NYSE: LHX) that, among other things, aims to improve the F-35's displays and processing power. Lockheed has deployed employees to L3 Harris to help speed the technology's development.
"The development of the integrated core processor by L3 Harris has driven delays due to unexpected challenges associated with hardware and software development, component and system integration testing and system qualification testing," Lockheed said in Wednesday's filing with the Securities and Exchange Commission. It added that the number of deliveries in 2024 will depend when the first TR-3 aircraft is delivered "and the time needed to complete the customer's acceptance process."
"We continue to assess the impacts and will have updates as the test plan continues," it said.
Lockheed also said the slowdown in deliveries would not change its financial outlook for 2023. In July, the company projected that full-year revenue would come in between $66.25 billion and $66.75 billion, up from the $65 billion to $66 billion it was projecting earlier in the year. It generated revenue of $15.4 billion in 2022.
Former JBG Smith exec David Paul joins Comstock board
Reston developer Comstock Holdings Cos. Inc. said Wednesday that David Paul, a former president and chief operating officer of Bethesda’s JBG Smith Properties, has joined its board.
Paul was president and COO from JBG Smith’s formation in 2017 until his retirement and the end of 2022. He stayed on as a senior adviser with JBG (NYSE: JBGS) until early February of this year. Previously, he was a managing partner at JBG Smith predecessor company JBG and played a large role in the company’s growth and move to the New York Stock Exchange. Paul started his career at Bain & Co. He currently serves on the board of Dartmouth-Hitchcock Health, a New England health system.
“David’s track record as an innovator and leader in the commercial real estate industry speaks for itself, and I look forward to working with David as we continue our mission to acquire, develop and operate high-quality commercial real estate assets,” Comstock Chairman and CEO Chris Clemente said in a statement.
Paul’s term on the board will expire at Comstock’s 2024 stockholder meeting.
Odds and ends
- Maryland’s Board of Public Works approved $150 million in contracts that could lead to widening the American Legion Bridge. (Maryland Matters)
- The politically divided Virginia General Assembly approved long-overdue budget legislation, voting in an unusually fast-paced special session to both reduce taxes and boost spending on public education and mental health. (Associated Press)
- UVA Health and Prince William Hospital are considering a plan to sell off their Caton Merchant House assisted living facility in Manassas to a private senior living operator looking to expand the development with a new memory care unit. (InsideNoVa)
- The Pentagon is considering the development of a vast network of AI-powered technology, drones and autonomous systems within the next two years to counter threats from China and other adversaries. (Wall Street Journal)
