Germany has awarded a $12 billion naval systems contract to U.S. defense contractors Lockheed Martin and RTX, according to reports from financial news sources.

The contract award comes as a separate European defense collaboration faces challenges. Mediation efforts have reportedly failed in a dispute over the Franco-German fighter jet program, according to German business publication Handelsblatt.

The naval systems deal represents a significant procurement decision by Germany as the country continues to modernize its military capabilities. Lockheed Martin and RTX, formerly known as Raytheon Technologies, are major U.S. defense contractors with extensive experience in naval and aerospace systems.

Details about the specific naval systems included in the $12 billion contract were not immediately available. The timeline for delivery and implementation of the systems also remains unclear.

The failed mediation in the Franco-German fighter jet dispute highlights ongoing challenges in European defense cooperation. The fighter jet program represents one of several joint European defense initiatives aimed at reducing dependence on U.S. military technology.

Both developments underscore the complex dynamics in the global defense industry as nations balance domestic capabilities, international partnerships, and strategic procurement decisions.