Lockheed Martin Denies Rumors of $1 Trillion F-35 Contract Cancellation

Lockheed Martin Corp (NYSE:LMT) shares fell 2% today after the defense contractor addressed and denied rumors circulating about a potential cancellation of its $1 trillion F-35 fighter jet contract. The company responded to a social media post on the platform formerly known as Twitter, which claimed that former President Trump intended to cancel the contract.

The original post on X suggested that Trump communicated plans to cancel the recently agreed F-35 contract to Lockheed Martin CEO Jim Taiclet. According to the claim, this decision, based on information from a source close to Trump, was justified by the assertion that "while Lockheed executives are being sent to DEI (Diversity, Equity, and Inclusion) camps, China is winning the fighter jet race."

Lockheed Martin quickly rebuffed these claims, stating on X, "This is false news and misinformation."

In a separate development, lawmakers have advanced the defense agenda by passing the annual defense bill. The newly enacted legislation approves the production of 68 F-35 fighter jets. However, it also delays the delivery of some aircraft until the Secretary of Defense presents specific plans to address and resolve ongoing development issues related to the F-35 program.