In the wake of its loss in the Next Generation Air Dominance (NGAD) competition, Lockheed Martin plans to incorporate technology from its bid into the F-35 program. This strategy aims to present a lower-cost alternative to the future F-47 fighter jet. Lockheed CEO Jim Taiclet stated, “The knowledge and technology development gained from our investments in the NGAD competition strengthened our conviction to enhance the F-35 to a fifth-generation-plus capability.” He challenged the team to deliver 80% of sixth-generation capability at 50% of the cost during the company’s first-quarter earnings call.
Taiclet mentioned that the company received a classified brief explaining why the U.S. Air Force selected Boeing for the F-47 contract, and Lockheed will not contest that decision. Instead, the feedback will be used internally to enhance the technology developed for their NGAD bid, which will also be applied to the F-35 and F-22 programs. He described the future upgrades as transforming the F-35 chassis into a “Ferrari,” with improvements in stealth technology, long-range tracking systems, and weapons to enhance the jet’s capabilities.
However, the F-35 program has faced challenges in integrating new technology. Lockheed is reportedly years behind schedule and over $1 billion over the initial budget for delivering Technology Refresh-3, a suite of software and hardware upgrades needed for Block 4 improvements. Although the company claims to have completed 98% of the TR-3 capability, it has yet to confirm when it will be combat-ready.
Despite these setbacks, Taiclet is confident that the F-35 can achieve nearly sixth-generation status. He reiterated his challenge to the aeronautics team, emphasizing their belief that there is a feasible path to achieve this goal. The Air Force’s decision in March to award Boeing the F-47 contract has effectively sidelined Lockheed from sixth-generation fighter programs for the foreseeable future, especially after being excluded from the Navy’s F/A-XX program as well.
Additionally, Lockheed faces uncertainty regarding future F-35 purchases as the Pentagon plans to reallocate 8 percent of the next five years’ budgets to other priorities. The political landscape, including President Trump’s threats to allies, has also introduced some doubt about future international sales. Despite these uncertainties, the company intends to uphold its production rate of 156 jets per year, with Taiclet asserting strong international demand for the F-35. He expressed confidence that any potential moderation in U.S. F-35 production could be offset by international sales, allowing the company to maintain a production rate of over 150 jets annually.
