Defense & Military
Lockheed Martin F-35 Deliveries Resume Amid TR-3 Upgrade Challenges
72 F-35 jets delivered after delays, as $2 trillion program faces certification hurdles and financial penalties over TR-3 upgrade issues.
Lockheed Martin has delivered 72 F-35 fighter jets to the U.S. government as of May 1, 2025, following extended delays stemming from issues with the Technology Refresh 3 (TR-3) upgrade. The delivery marks a partial recovery from a year-long pause in shipments that began in mid-2023, caused by software instability and hardware integration challenges. The TR-3 package, designed to modernize the F-35’s computing systems, is critical to supporting future Block 4 capabilities, which include advanced sensors and expanded weapons options.
Despite the resumed deliveries, the program remains under scrutiny. The Department of Defense (DoD) has withheld millions in payments per aircraft, reflecting concerns about the aircraft’s readiness for combat. The F-35 program, which accounts for nearly a third of Lockheed Martin’s annual revenue, is at a pivotal juncture as it balances technological ambition with operational reliability and fiscal accountability.
The F-35 Lightning II, developed under the Joint Strike Fighter (JSF) program, is the U.S. Department of Defense’s most ambitious and expensive aircraft project. Initiated in the 1990s, the program aimed to replace aging fleets across multiple military branches with a single, versatile platform. Lockheed Martin was selected as the prime contractor in 2001, developing three variants: the F-35A for conventional takeoff and landing, the F-35B for short takeoff/vertical landing, and the F-35C for carrier-based operations.
International collaboration has been a hallmark of the program. Partner nations such as the United Kingdom, Italy, and Australia have contributed to development and production, with global suppliers manufacturing key components. This has not only distributed costs but also strengthened geopolitical alliances through shared defense capabilities.
The TR-3 upgrade is central to the F-35’s future. It introduces a next-generation integrated core processor, improved cockpit displays, and an open-architecture software framework. These changes are foundational for the subsequent Block 4 enhancements, which will significantly expand the aircraft’s mission capabilities, including integration of new weapons and advanced electronic warfare tools.
TR-3 is more than a routine upgrade, it is the technological backbone for future enhancements. Without it, the F-35 cannot support the upcoming Block 4 capabilities, which are essential for maintaining superiority against evolving threats. These include hypersonic weapons, advanced integrated air defenses, and the growing use of unmanned systems in combat.
It also introduces artificial intelligence features to assist pilots in mission planning and threat assessment. The Department of Defense and Lockheed Martin have emphasized the importance of TR-3 as a prerequisite for these capabilities.
However, delays in TR-3 have ripple effects. Without certification, new aircraft are limited to training roles, and existing fleets cannot be upgraded. This stalls progress on pilot training, base deployments, and integration with allied forces, particularly in Europe where several NATO members await their deliveries. As of May 1, 2025, Lockheed Martin has delivered 72 F-35 jets to the U.S. government. This follows a significant backlog caused by TR-3 delays, during which aircraft were completed but not accepted due to software and hardware issues. In 2024, only 110 jets were delivered, well below the production capacity of 156 units per year. The company aims to deliver between 170 and 190 units in 2025 as it clears the parked inventory.
The financial implications are substantial. The Department of Defense initially withheld $5 million per aircraft due to the delays, later reducing this to $3.8 million in January 2025 after Lockheed showed progress on TR-3. These funds are expected to be released gradually through 2026, contingent on full combat certification of the upgrade.
Overall, the F-35 program’s projected lifetime cost has now surpassed $2 trillion, according to multiple government and industry sources. This figure includes $422 billion for procurement and $1.58 trillion for sustainment over the aircraft’s projected service life, which has been extended to 2088. Inflation adjustments account for nearly $1 trillion of the total cost.
“The F-35 program’s cost now exceeds $2 trillion, driven largely by sustainment and lifecycle extensions.” — Government Accountability Office The TR-3 upgrade has faced multiple technical hurdles. Software instability and hardware shortages, particularly in the core processor supplied by L3Harris, have delayed certification. Although Lockheed Martin declared the system “stabilized” in June 2025, the Department of Defense has not yet approved it for combat operations. As a result, aircraft delivered since July 2024 are restricted to training missions.
Lockheed’s facilities have also struggled with storage for undelivered jets. The Fort Worth assembly plant ran out of parking space, prompting concerns from the Government Accountability Office about infrastructure constraints. Additionally, the testing fleet, comprised of older aircraft, has suffered from spare parts shortages, further delaying the evaluation of TR-3 and Block 4 capabilities.
International deliveries have been affected as well. Denmark, Belgium, and Italy have experienced delays, and the United Kingdom has adjusted its procurement strategy by switching from F-35Bs to F-35As to meet nuclear certification requirements. These shifts underscore the global impact of the TR-3 delays and the interconnected nature of the program.
Lockheed Martin executives have acknowledged the challenges while emphasizing progress. CEO James Taiclet noted that while TR-3 is not yet fully certified, the company has achieved significant milestones. Vice President J.R. McDonald described the upgrade as being “very close” to combat readiness and highlighted its importance for allied deterrence, particularly in Europe.
Military officials have echoed these sentiments but remain cautious. Lt. Gen. Mike Schmidt, who oversees the F-35 program, defended the phased delivery approach, stressing the need for stable and maintainable aircraft. Gen. James Hecker of U.S. Air Forces Europe warned that unresolved TR-3 issues continue to affect training and base deployment timelines. Independent oversight bodies have raised concerns about the program’s structure. The Government Accountability Office cited the practice of concurrency, developing and producing aircraft simultaneously, as a key factor in the program’s escalating costs and delays. It also warned that extending the service life of older platforms like the F-16 could create capability gaps if F-35 upgrades are not delivered on time.
The U.S. Navy’s F/A-XX program and the Air Force’s Next Generation Air Dominance (NGAD) initiative reflect a shift toward sixth-generation capabilities. While Lockheed Martin remains a central player, competitors like Boeing are gaining ground with new fighter concepts and drone integration strategies.
European participation in the F-35 program remains strong. Components are manufactured across the continent, and Lockheed has outlined plans for a fully European-assembled F-35 by 2026. This industrial collaboration not only strengthens transatlantic ties but also ensures supply chain resilience amid geopolitical uncertainties.
Despite the delays, the F-35 continues to expand its global footprint. NATO allies such as Greece, Romania, and the Czech Republic have signed new contracts, and potential deals with Austria, Portugal, and Spain are under discussion. These developments highlight the aircraft’s enduring appeal despite its challenges.
Lockheed Martin’s delivery of 72 F-35 jets marks a significant but incomplete step toward stabilizing the program. The TR-3 upgrade remains a bottleneck, affecting both domestic and international operations. Financial penalties, infrastructure constraints, and testing delays continue to pose risks to the program’s schedule and credibility.
Looking ahead, the successful implementation of TR-3 and the rollout of Block 4 capabilities will be critical. These upgrades are essential not only for maintaining air superiority but also for preserving the program’s global partnerships. As the defense landscape evolves, the F-35 must adapt to remain a cornerstone of allied airpower.
What is the TR-3 upgrade? Why were F-35 deliveries delayed? How much does the F-35 program cost?
Lockheed Martin’s F-35 Deliveries Amidst TR-3 Upgrade Delays: A Comprehensive Analysis
Background Information
TR-3 and Block 4: Strategic Importance
Key Facts and Data
Recent Developments
Expert Opinions
Global and Industry Context
Conclusion
FAQ
TR-3 is a technology refresh for the F-35 that includes a new core processor, enhanced displays, and software architecture to support future upgrades like Block 4.
Deliveries were delayed due to software instability and hardware integration issues with the TR-3 upgrade, preventing the jets from receiving combat certification.
The lifetime cost of the F-35 program now exceeds $2 trillion, including procurement, operations, and sustainment over a projected service life until 2088.
Sources
Photo Credit: AF mil
Defense & Military
First Brazil-Built Saab Gripen E Completes Maiden Flight
Embraer’s Gavião Peixoto facility flew the first Gripen E assembled outside Sweden on October 6, 2026.
The first Saab Gripen E fighter aircraft assembled outside of Sweden completed its maiden flight on October 6, 2026, at Embraer’s industrial complex in Gavião Peixoto, Brazil.
The successful flight validates a decade-long technology transfer program between Saab AB and Embraer S.A., establishing the only active supersonic fighter production line in South America. Embraer announced the milestone in a press release on October 7, 2026, marking a critical step toward delivering the locally produced aircraft to the Brazilian Air Force (FAB).
The maiden flight took place at 10:21 local time, piloted by Saab Chief Test Pilot Jakob Högberg. The event serves as the primary physical validation of the industrial partnership between the Swedish aerospace company and its Brazilian counterpart. Under the agreement, Embraer engineers and technicians received extensive training at Saab’s facilities in Linköping, Sweden, before returning to establish the parallel production line in São Paulo state.
Bosco da Costa Junior, President & CEO of Embraer Defense & Security, described the flight as a historic milestone for the country’s aerospace sector that confirms the success of the long-term strategy combining FAB’s vision, Saab’s technological expertise, and Embraer’s industrial capabilities.
“More than an achievement for the Gripen Program, this milestone demonstrates that the competencies developed over the years have become real and proven industrial capabilities in Brazil, strengthening our Defense Industrial Base and our ability to participate in highly complex global defense programs.” Marcus Wandt, Head of Saab’s Business Area Aeronautics, noted that the maiden flight proves the Brazilian production line has reached a new level of maturity, establishing a solid foundation for the fighter’s future development in the region.
The Brazilian Gripen Program, known as FX-2, originated with a 2014 contract in which the Brazilian government ordered 36 aircraft. The order comprises 28 single-seat Gripen E models and eight two-seat Gripen F models. The Brazilian Air Forces designates the aircraft as the F-39E and F-39F.
While the initial aircraft were manufactured entirely in Sweden, the contract mandated a comprehensive technology transfer to build long-term national competencies in Brazil. Embraer inaugurated the Gripen E final assembly line at Gavião Peixoto on May 9, 2023. The facility officially unveiled the first locally assembled airframe on March 25, 2026. Of the 36 aircraft in the initial order, 15 are planned for production at the Brazilian facility.
The Brazilian Air Force already operates the type. The Gripen E entered operational service with the First Air Defense Group (1st GDA) at Anápolis Air Base on December 19, 2022. Prior to this new locally built delivery, the 1st GDA operated 10 Gripen E fighters manufactured in Sweden. Following the completion of its flight-test campaign, this newly flown aircraft will be transferred to Goiás State to join the active fleet.
The maiden flight in Brazil follows closely behind another major program milestone. On August 28, 2026, the two-seat Gripen F variant completed its own maiden flight in Linköping. Brazil serves as the launch customer for the F model, which was developed jointly by Saab and Embraer engineers. The industrial footprint at Gavião Peixoto may expand beyond the initial 15 airframes. In July 2026, Embraer and Saab signed a Heads of Agreement to deepen their cooperation. The agreement contemplates the potential production of 20 additional Gripen aircraft in Latin America, allowing the Swedish manufacturer to offer regional assembly and technology transfer as part of future export packages.
We assess that the successful local production of the Gripen E fundamentally shifts Embraer’s position in the global defense market. By proving its ability to assemble a modern supersonic fighter, the Brazilian manufacturer not only secures its domestic defense industrial base but also creates a viable second export hub for Saab. This dual-production strategy could prove critical if Saab secures further orders in Latin America, allowing the Swedish manufacturer to offer regional assembly and technology transfer as part of future export packages.
For Embraer, the Gripen production line complements its success with the C-390 Millennium transport aircraft. Operating a live fighter production line elevates the company’s technical credentials when bidding for complex international defense contracts, proving that its engineering workforce can absorb and execute highly classified, third-party intellectual property at scale.
Validating the technology transfer program
Building South America’s supersonic production base
Expanding the Saab and Embraer partnership
AirPro News analysis
Photo Credit: Embraer
Defense & Military
BAE Systems Wins F-35 EW Suite Contract for Lots 20-22
BAE Systems will manufacture the AN/ASQ-239 electronic warfare suite for F-35 Lots 20-22, covering new-build and retrofitted aircraft.
BAE Systems has secured a contract from Lockheed Martin to manufacture the AN/ASQ-239 electronic warfare suite for Lots 20 through 22 of the F-35 Lightning II program, sustaining production of the fighter’s critical electromagnetic defense capabilities.
The agreement, announced in an October 6, 2026 press release, ensures both new-build aircraft and retrofitted jets will receive the advanced systems required to detect, jam, and counter threats in contested airspace. Neither BAE Systems nor Lockheed Martin disclosed the financial value of the Lots 20-22 order.
The AN/ASQ-239 is the built-in electronic warfare (EW) suite for the F-35 Lightning II. The system provides 360-degree situational awareness, radar warning, targeting support, and self-protection capabilities. It is designed to detect and geolocate electronic emitters, allowing the aircraft to evade, engage, counter, or jam threats.
Amber Dolan, Vice President of F-35 Solutions at BAE Systems, stated that the company has continuously evolved its EW hardware and software to maintain a decisive battlespace advantage for operators.
“We’re laser-focused on scaling production and delivering software-based capabilities to meet the rapid pace of conflict,” Dolan said. Manufacturing for the Lots 20-22 contract will take place at BAE Systems facilities in Austin, Texas, and the New Hampshire cities of Manchester, Merrimack, and Nashua.
The F-35 program is currently undergoing a major modernization effort known as Block 4, which relies heavily on upgraded electronic warfare capabilities and new processors under the Technology Refresh 3 (TR-3) initiative.
The EW upgrade has been described as the centerpiece of the Block 4 improvements, designed to outpace emerging threats and provide more powerful signal processing. On December 15, 2021, BAE Systems received a $493 million contract to upgrade the F-35’s EW system specifically for the Block 4 modernization program.
The F-35 serves as the primary fifth-generation fighter for the US Air Force, Navy, and Marine Corps, alongside numerous allied nations. The EW suite is critical for the aircraft’s survivability in contested environments against modern integrated air defense systems, enemy fighters, and missiles.
BAE Systems has supplied the EW suite for every F-35 built, delivering over 1,500 units to date. The British multinational defense, security, and aerospace company employs over 110,000 people globally and operates across air, land, sea, space, and cyber domains. Its US subsidiary, BAE Systems, Inc., is headquartered in Falls Church, Virginia.
We view the continuation of the AN/ASQ-239 production through Lots 20-22 as a critical stabilizing factor for the broader F-35 supply chain. While the financial terms of this specific lot order remain undisclosed, the electronic warfare suite represents the core of the aircraft’s survivability and lethality upgrades under the Block 4 framework. As global threat environments become increasingly contested by advanced integrated air defense systems, the ability of BAE Systems to scale production across its Texas and New Hampshire facilities will be a key metric in meeting the operational demands of the Air Forces and its international partners.
Sustaining the F-35’s electromagnetic defenses
The Block 4 modernization context
BAE Systems’ footprint in the program
AirPro News analysis
Photo Credit: BAE Systems
Defense & Military
First Royal Moroccan Air Force F-16 Block 72 Completes Test Flight
Lockheed Martin flew the first RMAF F-16 Block 72 on Oct. 6, 2026, advancing a $3.787B, 25-aircraft procurement.
Lockheed Martin completed the first test flight of a Royal Moroccan Air Force (RMAF) F-16 Block 72 aircraft on October 6, 2026, at the manufacturer’s facility in Greenville, South Carolina.
The flight initiates the formal testing phase for the North African nation’s new fighter fleet before official deliveries begin. In a press release announcing the milestone, Lockheed Martin highlighted Morocco’s position as the launch customer for the Block 72 configuration, a variant distinguished by its Pratt & Whitney engines and advanced avionics.
The inaugural flight marks a critical step toward delivering the most advanced F-16 variant to the RMAF. According to reporting by aviation publication The War Zone, the specific aircraft flown in South Carolina was a two-seat F-16D model, and the test pilot utilized a Digital Joint Helmet Mounted Cueing System (D-JHMCS). Lockheed Martin will now put the aircraft through a comprehensive flight-testing program before the first official handover.
Mike Shoemaker, Vice President and General Manager of Lockheed Martin’s Integrated Fighter Group, stated that the flight reflects meaningful progress on the program and serves as a critical step in strengthening the future airpower of the RMAF.
“The F-16 remains a vital component of today’s and future air defense, and we’re proud of the role it will continue to play in supporting Morocco’s sovereignty and contributing to regional stability for decades to come,” Shoemaker said. The U.S. State Department and the Defense Security Cooperation Agency (DSCA) formally approved the foreign military sale of 25 F-16C/D Block 72 aircraft to Morocco on March 25, 2019. The DSCA estimated the value of the procurement package at $3.787 billion.
The Block 72 configuration introduces several fifth-generation capabilities to the fourth-generation airframe. Key upgrades include the Northrop Grumman AN/APG-83 Scalable Agile Beam Radar (SABR), modernized mission computers, updated avionics, and Pratt & Whitney F100-229 engines. The acquisition is designed to improve interoperability with the United States and other regional allies during coalition operations.
The procurement of new airframes is part of a broader recapitalization effort for the RMAF, which currently operates a mixed fleet of F-16s, C-130s, advanced radar systems, and UH-60 Black Hawk Helicopters. Concurrently with the 2019 Block 72 approval, the U.S. government cleared a $985 million upgrade package for Morocco’s existing fleet of 23 F-16 Block 52+ aircraft, bringing them up to the advanced F-16V standard, according to Defense News.
Alongside the aircraft procurement, Lockheed Martin is actively expanding its industrial footprint in Morocco to support the RMAF fleet locally. The defense contractor has partnered with Maintenance Aero Maroc to develop an 8,000-square-meter Maintenance, Repair and Overhaul (MRO) facility in Benslimane.
The Benslimane facility will initially focus on heavy maintenance for the RMAF’s C-130 Hercules transport aircraft. Lockheed Martin delivered its first C-130H to Morocco in 1974. The company plans to eventually expand the facility’s capabilities to service the incoming F-16 Block 72 fleet, supporting the Moroccan government’s objective of establishing a regional aerospace hub. Morocco’s position as the launch customer for the Block 72 and its concurrent fleet upgrades demonstrate a clear strategic alignment with United States defense architecture. By establishing domestic MRO capabilities alongside the acquisition of advanced platforms like the Block 72 and the High Mobility Artillery Rocket System (HIMARS), the Royal Moroccan Air Forces is building a self-sustaining operational framework. This reduces reliance on foreign maintenance facilities and positions the country as a highly interoperable coalition partner in Africa.
Commencing the flight-test phase
Morocco’s fighter fleet modernization
Expanding domestic maintenance capabilities
AirPro News analysis
Photo Credit: Lockheed Martin
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