July 14 (Reuters) - Lockheed Martin ( LMT ) has

delivered 72 F-35 jets to the U.S. government as of May 1, after

several months of delay due to late software improvements,

Bloomberg News reported on Monday, citing the Pentagon's program

office.

The upgrade, known as Technology Refresh 3 (TR-3), aims to

give the stealth fighter software and hardware improvements,

including better displays and processing power. It has been

weighed down by delays, prompting the Pentagon to withhold $5

million per jet since last year.

That number was reduced by about $1.2 million per plane in

January as the defense contractor was considered to be making

some progress with the upgrade, according to the report.

Funds will continue to be withheld for new production

aircraft, the report said, adding that a majority of funds

remain to be withheld and "will continue to be released

incrementally" into next year.

The Pentagon's program office did not immediately respond to

a Reuters request for comment, while Lockheed Martin ( LMT ) declined to

comment ahead of its second-quarter earnings next week.

The F-35 program is vital to Lockheed, as it contributes

about 30% of its revenue. The world's biggest defense contractor

is also likely to take a hit from fewer F-35's requested by the

Trump administration in the fiscal 2026 budget.