Lockheed Martin Corporation announced a $10 billion increase to its existing $15 billion contract for the delivery, development, integration, and engineering of the C‑130J Super Hercules tactical airlift aircraft, raising the total contract value to $25 billion. The modification, announced on December 23, 2025, expands Lockheed’s role in the program and adds new work for the company’s Marietta, Georgia facility, with completion scheduled for July 16, 2035.
The C‑130J program serves the United States and a broad coalition of allies, including Egypt, Australia, New Zealand, France, the Philippines, Norway, and Germany. The additional funding reflects the Pentagon’s confidence in Lockheed’s delivery capabilities and the growing demand for the aircraft’s versatile airlift, special operations, and maritime surveillance missions. The contract’s foreign‑military‑sales component underscores the strategic importance of the C‑130J to U.S. allies amid heightened geopolitical tensions in the Middle East, Indo‑Pacific, and Europe.
Financially, the $10 billion upside represents a significant revenue uplift for Lockheed. While the company has not yet updated its full‑year guidance, the contract is expected to strengthen its fixed‑wing transport portfolio and support earnings growth for the remainder of the fiscal year. Analysts note that the expansion aligns with Lockheed’s broader strategy to deepen its presence in the global airlift market, where the C‑130J remains the only currently produced version of the Hercules family.
The contract’s scope includes not only new aircraft deliveries but also ongoing sustainment and integration work, ensuring that Lockheed can maintain a steady revenue stream over the next decade. This long‑term commitment provides a predictable cash flow that can offset the company’s exposure to other high‑cost programs such as the F‑35 and the E‑130J communications platform. By securing a larger share of the C‑130J program, Lockheed also positions itself to capture additional foreign‑military‑sales opportunities as allies modernize their airlift fleets.
Management emphasized that the contract expansion reflects the Pentagon’s confidence in Lockheed’s execution and the continued relevance of the C‑130J in modern warfare. The company’s leadership highlighted the importance of maintaining a robust fixed‑wing transport capability for rapid global response and humanitarian missions, reinforcing Lockheed’s role as a key partner in U.S. defense strategy.
The $25 billion contract, now the largest single C‑130J program in Lockheed’s history, is a material development that will likely influence the company’s financial outlook and strategic positioning for the next decade.
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