Jan 28 (Reuters) - 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.

The shares dropped 3.9% in premarket trading.

U.S defense contractors are seeing a surge of weaponry demand as a result of the Russia-Ukraine war and conflicts in the Middle East, but are straining to meet demand amid a slower recovery in pandemic-related supply issues.

The Bethesda, Maryland-based company expects profit per share between $27 to $27.30 in 2025, missing analysts' average estimate of $27.92 per share, according to LSEG data.

Lockheed posted net income of $527 million, or $2.22 per share, a 71% slide from a year ago, as it booked $1.29 billion in losses associated with classified programs at its aeronautics and missiles and fire control business units.

Arms makers are likely to get a boost under Donald Trump's administration, which is expected to increase defense spending.

But the formation of the Department of Government Efficiency headed by billionaire Elon Musk, who has indicated that Pentagon spending and priorities will be a target of the efficiency initiative, has soured investor sentiment.

The billionaire has also criticized legacy defense programs like Lockheed Martin's F-35 fighter jet while calling for mass production of cheaper AI-powered drones, missiles and uncrewed submarines.

The F-35 program, which has been navigating delays in rolling out a technology upgrade to give the jet better displays and processing power under the Technology Refresh 3 program, contributes about 30% of the company's revenue.

Its aeronautics business, which makes the jet, reported a 40% drop in operating profit in the fourth quarter.

Lockheed's total sales of $18.62 billion in the quarter was marginally lower than a year earlier.