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