What is the primary reason for the update on the TR-3 schedule?

The update is primarily due to the ongoing process of finalizing TR-3 software development and testing, along with challenges in receiving the necessary hardware from suppliers. This has led to a revised projection for the delivery of the first TR-3 configured jet.

Will this delay affect Lockheed Martin's 2023 financial results?

Lockheed Martin currently does not anticipate any impact on its 2023 financial outlook. The company expects to deliver 97 aircraft in 2023, all in the TR-2 configuration, meeting its previously stated delivery target.

How does this affect the F-35 production rate?

The company is maintaining its F-35 production rate at 156 aircraft per year. This pace will continue even as Lockheed Martin works to finalize the TR-3 software and testing.

What factors could further impact the TR-3 delivery and 2024 outlook?

Potential impacts to the 2024 outlook include the actual timing of the first TR-3 aircraft delivery, the time required for customer acceptance, ongoing flight testing and integration of findings, supplier performance, and broader factors such as government budget uncertainty and potential disruptions to the supply chain.

LMT 8-K SEC Disclosure

Summary

Lockheed Martin Corporation (LMT) announced an update regarding its Technology Refresh 3 (TR-3) program for the F-35 fighter jet. The company now anticipates delivering the first TR-3 configured jet between April and June 2024, a shift from previous projections. Despite this delay, LMT expects to meet its 2023 delivery target of 97 aircraft, all in the TR-2 configuration, and currently forecasts no impact on its 2023 financial outlook. The production rate for F-35s remains strong at 156 aircraft per year, a pace the company intends to maintain while working through TR-3 software development and hardware procurement from suppliers.

Key Highlights

1First TR-3 configured F-35 jet delivery now expected between April and June 2024.
22023 F-35 delivery target of 97 aircraft remains achievable, all in TR-2 configuration.
3No anticipated impact on the 2023 financial outlook due to TR-3 schedule update.
4F-35 production rate maintained at 156 aircraft per year.
5Ongoing focus on securing necessary hardware from suppliers for TR-3.
62024 delivery numbers are contingent on the actual TR-3 delivery date and customer acceptance.
7Company continues to assess potential impacts on 2024 financials and will provide updates.

LOCKHEED MARTIN CORP 8-K Report, Corporate Update (Sep 6, 2023)

Summary

Key Highlights

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