Lockheed Martin's shares plunged 7% after losing $20 billion contract to Boeing for F-47

From Nasdaq: 2025-03-21 14:23:00

Lockheed Martin’s shares plummeted by 7% after losing out on a $20 billion contract to rival Boeing for the production of the military’s next-generation fighter jet, the F-47. This decision by the Trump administration comes as a surprise, as Lockheed had been favored to win the contract. The F-35, Lockheed’s current fifth-generation fighter jet, has faced criticism for cost overruns, with projected costs ballooning to $1.58 trillion. Despite this setback, Lockheed’s long-term revenue from the F-35 program remains stable, with potential for growth in other advanced weapon programs.

Investors should consider the impact of losing the F-47 contract on Lockheed’s medium-term growth prospects, as well as the overall uncertainty surrounding defense spending under the new administration. While Lockheed has opportunities to bid on other programs, the loss of this contract adds a level of unpredictability to the company’s future. It’s essential to weigh these factors before deciding to invest in Lockheed Martin.



Read more at Nasdaq: Why Lockheed Martin Shares Plunged Today