LMT · Earnings call · 2026Q3T · Full report
Supply Chain Constraints
LOCKHEED MARTIN CORP · 2026-10-22 · Importance 38 · Surprise 24 · In source text
Management said the company and its suppliers are resolving longstanding production bottlenecks to enable substantially higher deliveries. New supplier contracts included a $4.7 billion L3Harris PAC-3 propulsion contract, while Boeing and Northrop Grumman received subsequent awards for PAC-3 seeker production and missile components. Nearly 750 suppliers across 42 states support THAAD, and management said supplier collaboration and longer-term contract visibility are supporting production scale-up.
Key facts
- After Q3 2026 closed, Lockheed Martin awarded Boeing a $14.7 billion contract to triple PAC-3 seeker production.
- Lockheed Martin placed new supplier contracts for PAC-3 and THAAD in Q3 2026, including a $4.7 billion PAC-3 propulsion supply contract with L3Harris.
- After Q3 2026 closed, Lockheed Martin awarded Northrop Grumman a $1.6 billion contract for propulsion and other missile components.
- GM Defense delivered its first PAC-3 components to Lockheed Martin in under one month from the initial contract.
- Nearly 750 suppliers across 42 states support Lockheed Martin’s THAAD program.
- Lockheed Martin said its supply chain represents 60% of the inputs to its end products.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | negative | committed | -20.0% | After Q3 2026 closed, Lockheed Martin awarded Boeing a $14.7 billion contract to triple PAC-3 seeker production. |
| liability | negative | committed | -6.4% | Lockheed Martin placed new supplier contracts for PAC-3 and THAAD in Q3 2026, including a $4.7 billion PAC-3 propulsion supply contract… |
| liability | negative | committed | -2.2% | After Q3 2026 closed, Lockheed Martin awarded Northrop Grumman a $1.6 billion contract for propulsion and other missile components. |