Lockheed Martin counters false F-35 contract cancellation rumor

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

The original post on X suggested that Trump had communicated to Lockheed Martin CEO Jim Taiclet his plan to cancel the recently agreed-upon F-35 contract, citing concerns that "China is winning the fighter race while Lockheed sends executives to DEI camps," as per a source allegedly close to Trump.

Lockheed Martin promptly dismissed these allegations, stating on X, "This is false reporting and fake news."

In a separate development, lawmakers have moved forward with the defense agenda by passing an annual defense bill. The newly passed legislation authorizes the production of 68 F-35 fighter jets. However, it also imposes a delay on the delivery of some aircraft until the Secretary of Defense provides specific plans to address and resolve ongoing development issues with the F-35 program.

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Source: Investing.com