Lockheed Martin on Tuesday forecast it will make less profit than expected in 2025, as the top U.S. defense company grapples with the delayed rollout of upgrades to the F-35 fighter jet that are vital to its bottom line.

The Pentagon is reducing the funds withheld from Lockheed Martin Corp. for F-35s jets by $1.2 million a plane as the contractor works to verify and install the latest version of the fighter jet’s most capable hardware and software.

Lockheed Martin forecast 2025 profit that missed Wall Street expectations on Tuesday, as the defense giant grapples with delayed rollouts of a tech upgrade on the F-35, underscoring a cautious tone for the year amid rising global tensions.