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Newsweek
a day ago
- Business
- Newsweek
F-35 Myths Debunked as Foreign Faith in US Fighter Jet is Tested
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. U.S. President Donald Trump's triumphant strides back into the White House put NATO's European countries, as well as Canada, on edge. His historic skepticism about the alliance was one thing, but military planners in countries buying U.S. hardware began questioning whether the F-35—the world's most expensive weapons program—had been the right choice. The Lockheed Martin-made F-35 is the only real option for Western militaries outside the U.S. to get hold of a fifth-generation stealth fighter aircraft, and many of the 20 nations operating or buying them are NATO members. Fifth-generation planes are the most advanced currently in operation, with sixth-generation aircraft in the early development stages. As Trump settled back into the Oval Office, rumors of a "kill switch" started floating around in defense circles. There was—according to the whispers—effectively a button the U.S. could press to control the aircraft bought and operated by recipient countries. Although the Pentagon and analysts quickly tamped down on such talk, when paired with the Trump administration's at times abrasive and unpredictable approach to foreign policy, it made many think twice about just how wise it was to put all the fifth-generation eggs in the F-35 basket. A F-35B Lightning II fighter. The American-made F-35 Joint Strike Fighter has become arguably the most coveted fighter jet across the globe. A F-35B Lightning II fighter. The American-made F-35 Joint Strike Fighter has become arguably the most coveted fighter jet across the globe. Chris Hanoch/Lockheed Martin Corporation For now, after months of uncertainty for many U.S. allies, the worries seem to have cooled—at least for now. The U.K. announced at NATO's biggest summit of the year in June that it was buying at least 12 F-35A fighter jets, adding to the F-35B variants it already has. This means the country's Royal Air Force could join NATO's dual capable aircraft fleet, featuring jets certified to carry American tactical nuclear weapons as well as conventional bombs and missiles. The same month, Israel showed what the F-35 can do in combat when it began its campaign against Iran's nuclear sites and scientists. Israel's F-35s were vital in slicing away air defenses and clearing a path into Iranian territory for the rest of its aircraft—and, later, for U.S. forces—to target Tehran's most sensitive sites. But while panic has abated around U.S. trustworthiness as an ally to F-35 countries, the hard look at many nations' dependence on the U.S. shouldn't be cast away so soon, according to some. "The concept of a kill switch has been debunked, but there will always be concerns of over-reliance on a single supply source," retired Air Marshal Greg Bagwell, a former senior commander in the U.K.'s RAF, told Newsweek. The Qualms While experts and officials were quick to downplay concerns over a kill switch as they surfaced in early 2025, they conceded that the U.S. could have a very noticeable impact on how well these expensive aircraft operate, should it choose to influence software upgrades or halt access to intelligence and mission data. NATO has observed the U.S. cutting off its vital military aid deliveries to Ukraine several times and also choke Kyiv's access to American-derived intelligence in a bid to bend Ukraine to its will, namely to join ceasefire talks. Ukraine, U.S. allies could see, was backed into a corner by its dependence on the U.S. "If an F-35 user wanted to use the jets in a way that the United States was not happy with, then that would be a limited capability, because Lockheed Martin would be very soon able to turn off the support tap to the particular nation in question," Andrew Curtis, a retired RAF air commodore, told Newsweek. "So even though there might not necessarily be an actual 'kill switch,' the United States definitely has the capability to make things very difficult for F-35 users." A European official from one of the Baltic states, which stare down Russia directly, said in May there was growing concern that the U.S. could curtail sovereign decision-making for military operations should Russia invade and the eastern flank need to defend itself. The memory of how the U.S. treated Ukraine is still fresh, the official, who spoke on condition of anonymity, told Newsweek. The person was referring to all military supplies but indicated a broader worry about the rapprochement with Russia that Trump pursued from the start of his second term. More recently, the president has become more publicly frustrated with Russia as ceasefire negotiations made little headway. "If I were sitting in the Baltics at the moment, I would be thinking very seriously about the F-35 and the constraints that might be put on me" in the long term, Sir Christopher Coville, a retired U.K. air marshal, told Newsweek. A central European official involved with defense planning told Newsweek earlier this year that the countries operating F-35s in Europe had reassured one another their commitment to the fifth-generation stealth fighters was "ironclad." Dutch defense minister Ruben Brekelmans said in March it was in the "interest of all" for the F-35 to succeed. "I don't see any signs of the United States backtracking," Brekelmans added. Munitions are loaded on to an F-35A Lightning II during a 'hot' integrated combat turn on June 11, 2025, at Tyndall Air Force Base, Fla. Munitions are loaded on to an F-35A Lightning II during a 'hot' integrated combat turn on June 11, 2025, at Tyndall Air Force Base, Fla. Airman 1st Class Amanda Alvarez/U.S. Air Force The Pentagon had not signaled any intention that the U.S. would restrict use of partner nations' F-35s, the central European official said at the time. To do so would undermine U.S. defense exports across the world, they said, but added Europe's efforts to increase spending and production will gradually sideline all U.S. military imports. The Political Moves Adjusting to hostile messaging from the White House and a trade war at the start of the year, Canada put its planned procurement of 88 F-35 fighter jets under review. Portugal's outgoing government said in March that Lisbon needed to consider the new "geopolitical environment" when considering a recommendation to purchase F-35s, which cost roughly $100 million apiece. Canadian Prime Minister Mark Carney said in June the review would be wrapped up by the end of the summer, and that Ottawa had discussed fighter jet and submarine purchases with NATO allies. Trump has repeatedly called Canada the "51st state," a label slapped away by Ottawa. But the hint that the administration could annex Canada has lingered, albeit as an unlikely prospect. Retired Lieutenant General Yvan Blondin, commander of the Royal Canadian Air Force from 2012 until 2015, has advocated for a long, hard look at Canada's F-35 order. It is worth examining whether fourth-generation alternatives could work, he told Newsweek, but said "there's no better military option" than the U.S. stealth jet. Sixth-Generation Fighters Several different sixth-generation programs are in the works, piecing together manned fighter jets designed to be even harder to detect than their predecessors. Expected to come into service from the mid-2030s, they are also more automated and kitted out with more advanced avionics and weapons. The U.K., Italy and Japan have banded together on a sixth-generation fighter program called the Global Combat Air Programme—an industrial partnership underwritten by government treaties. On July 17, British defense giant BAE Systems unveiled the demonstrator aircraft for GCAP, expected to be able to fly within the next three years, and testing technologies that will go into the jet, called Tempest. France, Germany and Spain are working on a Future Combat Air System project, or FCAS, although it is currently expected to produce a sixth generation jet up to 10 years after GCAP. And there was tension last month after France told Germany it wanted a workshare of 80 percent in the project. The U.S. has two main programs, one for the Air Force, one for the Navy. Trump unveiled the Air Force's F-47 at a March briefing. "We're confident that it massively overpowers the capabilities of any other nation," he said. The Pentagon hopes to prioritize F-47 development over the Navy's parallel program, F/A-XX. It believes pursuing two programs at once could slow down both, Bloomberg reported in June. But Trump, in the same briefing, said the version of the "most advanced, most capable, most lethal aircraft ever built" sold to allies would be "toned down" by 10 percent. It is widely accepted that the U.S. has blunted its cutting-edge technology before it is shipped abroad, experts and officials said. It was the overt acknowledgment of something that had for decades been expressed in private that threw allies and prospective buyers, said the central European official. "This is not a great selling point for the F-47," said Blondin. An F-35 is assembled at Lockheed Martin Fort Worth Texas. An F-35 is assembled at Lockheed Martin Fort Worth Texas. MSgt USMC ret Randy A. Crites/Lockheed Martin Corporation There is a "bigger incentive" now for European NATO members to be involved in European-led sixth-generation programs, the central European official previously told Newsweek. They said they expected more countries to want to have a look-in at the development of these aircraft, and particularly to have their domestic industry contribute to sixth-generation programs. There will certainly be more interest in the jets' development on the continent now than before Trump was reelected, said Gabrielius Landsbergis, who served as Lithuania's foreign minister until November 2024. "There will be an increased pressure on pan-European projects, that is for sure," Landsbergis told Newsweek.
Yahoo
27-06-2025
- Business
- Yahoo
Analyst Says He's Buying Lockheed Martin (LMT) Amid a ‘Lot of Demand'
Jim Lebenthal from CNBC Investment Committee explained during a recent program why he owns Lockheed Martin Corp (NYSE:LMT): 'I think that unfortunately the world is a dangerous place and not getting any safer and I think there's going to be demand particularly with the change in stance from the US versus Europe. There's going to be a lot of demand from Europe for defense products. They're not going to be able to supply them all internally, so companies like Lockheed Martin, the rest of the US defense sector, I think are going to benefit over the next several years.' Photo by Joel Rivera-Camacho on Unsplash Conventum – Alluvium Global Fund stated the following regarding Lockheed Martin Corporation (NYSE:LMT) in its Q4 2024 investor letter: 'Lockheed Martin Corporation (NYSE:LMT), the defence contractor, fell 16.3%. Trump's new mate, Elon Musk, may have something to do with this. According to media reports, he has been 'mocking' Lockheed's F-35 fighter jets, which is the mainstay weapon of air defence for the US and its allies. His comments led to questions as to whether the military still needs manned jets, given the increasing capabilities of drones. This was further fuelled by news that Musk's SpaceX is likely to be part of a consortium to provide a new generation of defence contractors, and grab a slice of the USD 850b defence budget at the expense of the three incumbents. Whilst not disregarding this news, we do sense that the share price fall may be an over-reaction. It now trades at a smaller premium to our conservative valuation, and at 2.6% of the Fund, we will be monitoring with a view to increasing our position.' While we acknowledge the potential of LMT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-06-2025
- Business
- Yahoo
Citi Expects LMT to Deliver Improved Profits This Year
Lockheed Martin Corporation (NYSE:LMT) is one of Best Dividend Stocks to Buy for Dependable Growth. Citi expects Lockheed Martin Corporation (NYSE:LMT) to lead the S&P index in return on equity (ROE) next year. The defense contractor currently has an ROE of 9.6%, but that figure is projected to surge to 93.9% by the end of 2026, according to the firm's estimates. Two fighter jets in flight, highlighting the technology and experience of the companies combat aircraft. Last month, Lockheed Martin Corporation (NYSE:LMT) maintained its full-year guidance, supported by strong demand for its missile systems and fighter jets. Speaking to CNBC recently, COO Frank St. John noted that defense spending continues to rise in both Europe and the US. He made the following comment: 'We are probably in the beginning of a three-to-five year surge in defense spending.' In addition to its profitability, Lockheed Martin Corporation (NYSE:LMT) is also grabbing investors' attention because of its dividends. The company is committed to creating shareholder value by consistently increasing its dividend and reducing its outstanding share count. It has raised its payouts for 22 consecutive years, and its 5-year average annual dividend growth rate stands at nearly 7%. Lockheed Martin Corporation (NYSE:LMT) currently offers a quarterly dividend of $3.30 per share and has a dividend yield of 2.75%, as of June 17. Lockheed Martin Corporation (NYSE:LMT) is a leading global company in security and aerospace, focused on developing, producing, and integrating cutting-edge technology systems, especially for defense and space sectors. While we acknowledge the potential of LMT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-06-2025
- Business
- Yahoo
Lockheed's Consistent Payouts Cement Its Role as a Dividend Leader
Lockheed Martin Corporation (NYSE:LMT) is among the . The company's business segments produce substantial cash flow. After allocating funds toward research and capital investments, the company returns value to shareholders primarily through dividends and share buybacks. Two fighter jets in flight, highlighting the technology and experience of the companies combat aircraft. Buybacks reduce the total number of shares available, which increases each remaining shareholder's stake in the company. Over the past decade, Lockheed Martin Corporation (NYSE:LMT) has cut its outstanding shares by 21%. This reduction supports dividend growth without requiring a proportionally larger total payout, since fewer shares need to be paid. Combined with rising free cash flow, this strategy has enabled the company to steadily increase its dividend per share, up 156% over the last 10 years. Lockheed Martin Corporation (NYSE:LMT)'s dividend profile remains strong, with 22 consecutive years of dividend growth under its belt. The stock supports a dividend yield of 2.71%, as of June 14. Lockheed Martin Corporation (NYSE:LMT) delivers comprehensive space and mission solutions, ranging from human spaceflight to strategic defense systems, helping its customers maintain a technological edge. The company equips military forces with advanced tools across the full spectrum of deterrence and in every domain, enabling them to counter emerging threats effectively. While we acknowledge the potential of LMT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None.
Yahoo
29-05-2025
- Business
- Yahoo
Lockheed Martin Secures $509M Contract for GPS III Satellite Program
On May 28, Lockheed Martin Corporation (NYSE:LMT) secured a $509.76 million contract modification from the U.S. Air Force for the development of GPS III Follow-On Space Vehicles 21 and 22, increasing the total contract value to $4.1 billion. A shot of a prototype aircraft taking to the skies, the symbol of the companies innovation in aerospace & defense. This contract builds upon Lockheed Martin's ongoing work with GPS III satellites. The project features advanced anti-jamming and anti-spoofing M-code technology designed to improve secure access to military GPS signals for US and allied armed forces. The GPS III program has shown rapid development capabilities in recent months. In mid-December, SpaceX launched Lockheed's seventh GPS III satellite, known as Rapid Response Trailblazer (RRT-1). This came after the pre-launch planning period was slashed from two years to less than five months. The upcoming launch of the eighth GPS III satellite is expected to further reduce this timeline to just three months. The latest contract modification comes as Lockheed Martin is expanding its international defense partnerships. The company was recently selected to collaborate with Vrgineers, a Czech-based virtual and mixed-reality technology firm, as part of an industrial cooperation project for the Czech Republic's purchase of F-35 Lightning II aircraft. Lockheed Martin Corporation (NYSE:LMT) is a Bethesda, Maryland-based global aerospace, defense, and security company. The company specializes in research, design, development, manufacture, integration, and sustainment of advanced technology systems, products, and services. It operates through four main segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. While we acknowledge the potential of Lockheed Martin Corporation (NYSE:LMT) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LMT and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None.
