Lockheed Martin Corporation (NYSE:LMT) has received a $4.7 billion order for F-35 fighter jets from Pentagon. This is the eight batch of F-35 Fighter jets ordered by Pentagon and under the current deal; Lockheed would deliver 43 F-35 jets to Pentagon. The stocks of the company rallied nearly 2% after the announcement.
As per the details received the Pentagon’s F-35 office, the current deal includes 43 jet fighters out of which 29 will be delivered to the United States and 14 jets would be delivered to five countries including Italy, Israel, Britain, Japan, and Norway. The Pentagon has $399 billion in its overall budget for the F-35 Program and upon the delivery of these jets, more than 200 F-35 fighter jets would be ready to take flight under the banner of eight different countries.
F-35 Fighter Jet is available in three different variants including A-model, B-model, and C-model with a price tag of $94.8 million, $102 million, and $115.7 million respectively. The current deal has made it possible to lower down the cost of each of these warplanes. Another important factor towards the lower prices is the large fleet order for the year.
Lorraine Martine, project manager for Lockheed Martin Corporation (NYSE:LMT)’s F-35 program, said that the current deal highlights the efforts of the company in cutting the price tag of the F-35 fighter jet.
F-35 A-model comes with conventional landing system whereas F-35 B-model has vertical takeoff and landing abilities. The third variant, F-35 C-model, is designed for carrier abilities and it is the highest priced jet under this deal.
The shares of Lockheed Martin Corporation (NYSE:LMT) are trading at $187.93 and the company has overall market capitalization of $58.62 billion. It has 86% institutional ownership with 19.01% P/E ratio at the moment.
This article has been written by Prakash Pandey.