Lockheed Martin Registers Record-large Order Backlog Amid US Military Budget Uncertainty

The future of new US military projects remains in question as long as the Department of Defence is operating on a temporary budget due to disagreements between the Democrats and Republicans.

The US military’s biggest contractor, Lockheed Martin, reported a record order backlog at the end of the third quarter of 2019 worth $137 billion. Just over one third of it was completed due to orders in the sphere of aeronautics, while missiles and the space industry accounted for around 20% each.

The company is predicting a decrease in its sales rate in the near future, but currently has enough orders to fulfil. One of the biggest contracts for the company is the production of 400 F-35 stealth jets, worth $35 billion, and is set to be signed in the coming weeks.

F-35 Lightning II Joint Strike Fighter

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The major rise in the company's orders comes in a year of uncertainty for the US military budget, one of Lockheed's main sources of revenue. The US military is currently limited in its ability to launch new weapons programmes due to its budget being temporary, but all of its existing projects will continue to be funded as usual.

Last year, Lockheed Martin started delivering the fifth-generation F-35 jets, despite various reports of the plane suffering from issues, ranging from minor to critical ones. Its two-decade-long development was marred by slippages and cost overruns, but was finished despite this.