Lockheed Martin expects to finalize a deal with the U.S. government by the end of the year to build the 18th and 19th lots of F-35 Joint Strike Fighters. The delay in reaching the contract is costing the company hundreds of millions of dollars, with $700 million in delayed revenue in the third quarter. The company expects to deliver between 90 and 110 jets by the end of 2024, less than its usual production of about 156 jets annually.

Lockheed encountered delays due to software and hardware issues with an upgrade called Technology Refresh 3 (TR-3), resulting in a year-long delivery delay. An interim software version allows TR-3 jets to fly combat training missions, but they won’t be combat-ready until 2025. The company expects to recover costs associated with the delays over the next few years, with plans to deliver about 180 jets annually for the subsequent three years.

Lockheed foresees receiving around $300 million to $400 million more in 2025 as more jets are delivered and withheld payments from the government are released. The company also expects smoothed out cash collections over the period. However, lawmakers like Reps. Matt Gaetz and Seth Moulton have introduced a resolution criticizing Lockheed and alleging the failure to deliver on F-35 promises, citing ongoing issues with TR-3 and delays in future upgrades.