35% Defense Stock Rally Highlights Lockheed Martin’s 26% F-35 Sales Share
Lockheed Martin’s F-35 program represented 26% of 2024 net sales and embeds multidecade maintenance and support contracts, bolstering long-term recurring revenue. U.S. and Israeli strikes on Iran and June’s nuclear facility attack have driven defense stocks up about 35% since June, suggesting further share gains for Lockheed.
1. Defense Stock Rally After Iran Strikes
U.S. and Israeli strikes on Iran and June’s assault on nuclear facilities have driven defense equities roughly 35% higher since June, boosting investor sentiment toward major contractors like Lockheed Martin.
2. Structural Shift to Recurring Revenue
Recurring revenue now accounts for the majority of life-cycle value in major weapons systems. Operating and support costs can represent about 70% of total life-cycle expenses, covering parts, maintenance, training, software updates and logistics, sustaining cash flow independent of new procurement.
3. Lockheed Martin’s F-35 Ecosystem
Lockheed Martin’s F-35 program exemplifies this shift, accounting for 26% of consolidated net sales in 2024. Revenue from the program includes development, production and long-term maintenance contracts, embedding the company deeply in multidecade support and modernization cycles.