Lockheed Martin, maker of F-35s in Fort Worth, gives outlook amid potential tariffs
Lockheed Martin Corporation executives told analysts Tuesday they remain confident that the defense and aerospace manufacturer will be able to weather potential tariffs with minimal impact on business.
The Trump administration issued a 90-day pause on new tariffs on almost every country in the world earlier this month, but the duties are still scheduled to go into effect on July 9.
During a first quarter earnings call Tuesday, Lockheed CFO Evan Scott said the company expects it will be able to mitigate the impacts of tariffs. Scott, who was named chief financial officer on Thursday, said the gap between when Lockheed incurs a tariff cost and recovers it will be key.
Lockheed’s sales were up 4% in the first quarter of 2025, hitting $18 billion. The F-35 program, which assembles the fighter jets in Fort Worth, saw a $215 million increase in sales.
The company did not adjust its 2025 earnings forecast to account for tariffs, Trump’s executive orders or Boeing being selected to develop the world’s sixth-generation fighter aircraft, the F-47.
Other major defense manufacturers are split on how tariffs could hurt their business. Northrop Grumman also didn’t change its earnings forecast to account for potential tariffs. RTX Corp., previously known as Raytheon Technologies, said tariffs could cause an $850 million decline in profit this year, which led to a sharp drop in its stock price.
Lockheed expects to maintain its F-35 Lighting II production rate of over 150 aircraft per year. Company leaders don’t expect the United States to cut back on purchasing the aircraft. But if it happens, they said, international demand would likely make up any decline in U.S. sales.
Some experts say the defense industry may be more isolated from tariffs than others, due to the protected nature of its supply chains.
Defense firms are banned from getting certain items from China. The U.S. has imposed a 145% tariff on Chinese goods, while China has placed a 125% duty on American products. A 2023 report found Chinese products are still part of the Department of Defense’s supply chain.
On April 9, the Trump administration ordered the Department of Defense to begin reviewing acquisition programs. The administration is also working to make it easier for U.S. defense companies to sell items to other countries.
“I’m really encouraged and energized by what the administration is doing here,” Lockheed’s chairman, president and CEO James Taiclet said during Tuesday’s conference call.
The F-35 program has faced opposition from billionaire Elon Musk, one of Trump’s top advisors, who said the U.S. should end the program.
Lockheed Martin has assembled the F-35, considered the world’s most advanced fighter jet, in Fort Worth since 2006. The company supports over 43,000 direct and indirect jobs in Texas, and has an over $8.9 billion economic impact on the state.
