On Friday, the U.S. Department of Defense announced it has awarded Lockheed Martin (NYSE:LMT) a trio of contracts related to the F-35 Lightning II fighter jet. The combined value of all three contracts amounts to $4.8 billion.
The largest contract of the three, valued at $3.7 billion, instructs Lockheed to build its sixth tranche of F-35s for the military, an order including 18 conventional takeoff and landing (CTOL) F-35As for the Air Force, six short take-off, vertical landing (STOVL) F-35Bs for the Marine Corps, and seven "carrier variant" F-35Cs for the Navy -- 31 fighter jets in all.
Additionally, the Pentagon awarded Lockheed a $753 million "undefinitized modification" to a previous award to fund "non-recurring sustainment and logistics support for delivered and projected air systems," as well as a $374 million undefinitized modification paying for the "manufacture and delivery of initial air vehicle spares in support of 60 low-rate initial production lot VI and VII air vehicles."
This latter contract refers to both the sixth tranche of F-35s now ordered and an anticipated seventh tranche yet to be ordered. Tranche seven is anticipated to contain 19 F-35As, six F-35Bs, and four F-35Cs.
Fool contributor Rich Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Lockheed Martin. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.