Lockheed, Pentagon Close $4B F-35 Contract

LockheedLogoLockheed Martin (NYSE: LMT) and the Defense Department have closed on a new contract for the fifth batch of F-35 fighter jets, Reuters reports.

The new agreement is worth $3.8 billion for the 32 jets including 22 conventional takeoff and landing variants for the Air Force, three short-takeoff-and-vertical variants for the Marine Corps and seven carrier-based variants for the Navy.

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David Alexander reports each Air Force variant jet is valued between $107 million each under this new deal, 4 percent less than the last deal that priced each of those jets at nearly $111.6 million each.

Loren Thompson, a defense consultant and industry analysts, wrote in a blog post Friday the Air Force’s variant should cost $64 million per jet by the 10th lot if the increase in production stays on schedule.

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