04:31 PM EDT, 10/07/2024 (MT Newswires) -- Lockheed Martin ( LMT ) has reached an agreement with the Pentagon regarding specific targets it must achieve by year-end to secure part of a withheld $500 million payment for F-35 jets lacking essential upgrades, Bloomberg reported Monday, citing the US program manager Lt. Gen. Michael Schmidt.

The agreement includes a five-year, $350 million investment from Lockheed into the Pentagon's F-35 software lab and testing facilities, Schmidt said in an interview, according to the news outlet.

Lockheed expects to deliver between 75 and 110 upgraded F-35s by Dec. 31, which includes both new aircraft and those previously backlogged, Bloomberg said.

In August, the Pentagon announced it was withholding nearly $5 million for each F-35 that had not yet received the advanced Technology Refresh 3, or TR3 upgrade, the report said.

Neither Lockheed Martin ( LMT ) nor the Pentagon immediately responded to comment requests by MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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