LMT · 10-Q · 2026Q3 · Full report

Supply Chain Constraints

LOCKHEED MARTIN CORP · 2026-10-22 · Importance 32 · Surprise 24

The company continues to experience supplier shortages and performance issues, although on-time deliveries have generally been steady and pressures remain in certain areas. It is working with suppliers to meet contract commitments and is securing materials through long-term contracts, identifying alternative sources, and collaborating with customers on industry-wide challenges. Rare-earth minerals used in certain products have raised supply-availability concerns; Lockheed Martin is qualifying alternative sources, securing supply through long-term agreements, and working with customers on solutions.

Key facts

• Lockheed Martin received approximately $225 million in refunds related to prior tariff assessments through the nine months ended September 27, 2026. source
• Supply-chain challenges, tariffs, and raw-material availability, including rare earth minerals, may affect the availability and cost of goods; if significant supply issues or high inflation cannot be mitigated, future profits, margins, and cash flows, particularly on existing fixed-price contracts, may be adversely affected. source
• Lockheed Martin is monitoring rare-earth supply and mitigating potential disruptions by identifying and qualifying alternative sources, securing supply through long-term agreements, and collaborating with customers; inability to mitigate disruptions could adversely affect future profits, margins, and cash flows. source
• Supply-chain and macroeconomic challenges may increase costs, delays, disruptions, and performance challenges for Lockheed Martin, its suppliers and partners, and its customers. source
• Lockheed Martin experienced supplier shortages and performance issues; although on-time deliveries were generally steady, pressures remained in certain areas. source
• Lockheed Martin does not currently expect existing tariffs to have a material long-term impact on results of operations, excluding the near-term cash-flow impact. source