The UK government has said that F-35 prime contractor Lockheed Martin has confirmed its intention to deliver the 48 F-35B stealth fighters by the end of 2025, which will complete Tranche 1 of an order that is hoped could expand to at least 74 aircraft.
Responding to a parliamentary question on 14 November, UK Minister for Defence Procurement Maria Eagle confirmed that the UK’s initial Tranche 1 of the F-35B programme acquisition would be complete next year.
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However, questions remain over the eventual number of F-35B’s the UK will acquire, amid claims over a public finance crunch and potential cuts to military procurement programmes when the Strategic Defence Review is published in the first half of 2025.
It was reported recently that a batch of three aircraft were expected to arrive in the UK before the end of 2024, which will bring the number of F-35s delivered to 37 aircraft.
This indicates an expected delivery of 11 F-35B stealth fighters in 2025, potentially acquired in three or four batches through the year.
As the sole tier one partner to the US-led F-35 programme, the UK has been closely aligned with the build effort and has a commitment to acquire at least 74 of the aircraft, although this figure has dipped significantly from the 138 airframes set as the initial upper limit.
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By GlobalDataLockheed Martin outlines programme difficulties
In May this year it was disclosed that although the F-35 programme had reached full-rate production, engine deliveries were hampered by supply chain delays and parts shortages, according to findings by the US Government Accountability Office.
On 22 October, Lockheed Martin CEO Jim Taiclet reported that Lockheed Martin delivered 48 F-35 fighters in Q3 2024 and the company “remained in negotiations” with the US government on the Lots 18-19 production contract.
However, Lockheed Martin said that while the company continues to work in an effort to meet the US government’s desired aircraft delivery dates for Lots 18-19 aircraft, costs “began to exceed the advanced acquisition contract value in the third quarter of 2024”.
As a result, “the company was unable to recognise revenue and profit on approximately $400 million of costs incurred on the programme in the third quarter of 2024, with at least an additional $300 million of impacts across the supply chain”.
Further, Lockheed Martin stated that it was prevented from invoicing and receiving cash of approximately $450m through Q3 2024, at the end of which the company also had approximately $2bn in potential termination liability exposure to third parties related to Lots 18-19.
The lack of a contractual authorisation for Lots 18-19 from the US government would see Lockheed Martin’s financial condition to be “negatively impacted”, the company stated.
In the Q2 2024 results announcement, Lockheed Martin stated that “the F-35 remains a top priority”, with the first Technology Refresh-3 (TR-3) configured aircraft handed over, with an expectation that deliveries through the remainder of the year would meet its expected range of 75-110 F-35 fighters.
