CFO said the delay could pressure cash flow in the second quarter before normalizing in the third quarter.

Lockheed Martin (LMT) stock gained 1% in premarket trade after falling 2.3% in the previous session after the company said some of its F-35 contract awards could be delayed.

While speaking at a BofA Securities conference, the company’s chief financial officer, Evan Scott, said that its customer has told the company that lots 18 and 19 would be combined into a single contract.

The Department of Defense placed an order for 145 F-35 aircraft worth $11.8 billion last December. The F-35 military aircraft contributes significantly to the aerospace and defense firm’s revenue.

“The overall ward now is probably gonna happen later in the second quarter than if Lot 18 had been a standalone,” Scott said.

Scott said the delay could pressure cash flow in the second quarter before being normalized in the third quarter.

He added that the Middle East has been seen as the company’s fastest-growing area.

During his visit to the Middle East, President Donald Trump announced a slew of defense agreements, including a $142 billion deal with Saudi Arabia.

“I think we're seeing a lot to be optimistic about, based on some of the recent events that we're seeing in the announcements,” Scott said.

Retail sentiment on Stocktwits was in the ‘neutral’ (54/100) territory, while retail chatter was ‘high.’

LMT’s Sentiment Meter and Message Volume as of 04:34 a.m. ET on May 15, 2025 | Source: Stocktwits

Retail traders pointed out the potential drop in cash flow, and one user said that Boeing could be the primary beneficiary of the agreement with Riyadh.

Lockheed Martin stock has fallen 7.6% year to date (YTD).

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