Lockheed Martin reported higher-than-expected third-quarter revenue despite the problems with F-35 production.
The company’s net earnings reached almost $1.7 billion in Q3 and more than $3.8 billion in 2022 so far, according to financial results that were posted on October 18, 2022.
While profit was lower than expected, revenue beat expectations, reaching over $65 billion.
This was partly due to increased production of Lockheed Martin’s flagship project, the F-35 fighter jet, as well as an increase in revenue stream from classified projects, the company’s statements reveal
The increase in F-35 sales has occurred despite significant supply chain problems. In September 2022, F-35 deliveries were suspended after it was revealed that some metal alloys used by the aircraft originate from China.
Defense Federal Acquisition Regulations Supplement (DFARS), a supplement of Federal Acquisition Regulation (FAR), prohibits the use of material made in China in defensive applications. The issue was investigated, and the deliveries resumed in October 2022.
It is still not known if the problems will allow Lockheed Martin to complete delivery of a planned 196 F-35s in 2022 and break its 2021 record of 142 delivered aircraft.
Despite the issues, the F-35 received a significant number of foreign orders in 2022, with Germany, Canada and Czechia all placing orders for the aircraft. In addition, the US and Italy expanded their initial orders of the aircraft.