Lockheed Martin Clears 72-Jet F-35 Backlog After TR-3 Delays

Lockheed Martin has delivered all 72 F-35 Lightning II fighter jets that had been sitting at its Fort Worth, Texas, plant, clearing a months-long backlog caused by delays in installing the aircraft’s Technology Refresh 3 (TR-3) software and hardware package. The U.S. government accepted the jets as of May 1, according to the Pentagon’s F-35 program office. TR-3 is designed to boost processing power, improve cockpit displays and lay the foundation for the broader Block 4 upgrade, but integration setbacks led the Defense Department to withhold about $5 million per aircraft starting last year. The withholding was trimmed to roughly $1.2 million per plane in January after the contractor made progress, and the Pentagon said funds will continue to be released incrementally as new production aircraft meet the standard. The resolution of the backlog removes a logistical bottleneck for the world’s biggest defense program. The F-35 contributes roughly 30 percent of Lockheed Martin’s annual revenue and remains central to the company’s financial performance ahead of its second-quarter earnings report next week.