V-ECON Domain Audit: Lockheed Martin

Audit Target: Lockheed Martin Corporation
Audit Phase: V-ECON Audit
Date: Based on research memo dated February 2026

Supply Chain & Sourcing Relationships

Lockheed Martin maintains extensive defense and aerospace supply chain relationships within Israel, operating within the framework of the Israeli Ministry of Defense’s Industrial Cooperation Authority (ICA). Under this framework, foreign defense contractors receiving contracts above the established threshold value are required to direct subcontracting and co-production work to Israeli industrial partners ¹.

Tier-1 Defense Suppliers:

• Israel Aerospace Industries (IAI): The company’s Bedek Aviation Group receives aerostructure work linked to the F-35 programme under offset and ICA arrangements. This contract is valued at approximately $2.5 billion over 15 years to manufacture over 800 wing pairs for the F-35 aircraft. The 350th fighter jet wing was delivered in February 2026 ²³.

• Elbit Systems: A long-standing supplier relationship exists, with Elbit providing avionics, helmet-mounted display systems, and electronic warfare components. A $34 million contract was awarded to Elbit Systems for the development of extended-range external fuel tanks for the F-35I aircraft — marking the first-ever F-35 external fuel tank integration ⁴⁵.

• Rafael Advanced Defense Systems: Documented U.S. partnership and supply arrangements include the integration of Rafael-developed weapons systems onto Lockheed Martin platforms under Israeli-specific programme authorizations.

Technology Transfer Arrangements:

Israel holds a unique position as the only F-35 operator permitted to integrate domestic weapons systems into the F-35 mission systems architecture. This includes Israeli-developed electronic warfare suites, missiles, and intelligence systems ⁶⁷. A $11.4 million Lockheed Martin contract modification supports Israel-specific F-35 software development, with approximately 80% of the work conducted in Fort Worth, Texas, and completion targeted for March 2030 ⁸. The Israeli F-35I “Adir” incorporates Israeli-developed electronic warfare systems, communications equipment, computing architecture, and weapons integration capabilities ⁷.

Sub-tier (Tier-2 and Tier-3) Suppliers:

No public evidence has been identified beyond tier-1 firms (IAI, Elbit, Rafael). Lockheed Martin’s full supplier lists are not publicly available, limiting visibility into the deeper tiers of the supply chain ³.

Product Origin, Labeling & Regulatory Compliance

Settlement-Origin Product Labeling:

No public evidence has been identified indicating that any Lockheed Martin product is subject to country-of-origin labeling requirements pertaining to Israeli settlements or occupied territories. Lockheed Martin’s output — consisting of aircraft, missiles, satellites, and radar systems — is governed by the International Traffic in Arms Regulations (ITAR) and Export Administration Regulations (EAR), not consumer goods labeling regimes.

UN OHCHR Business Enterprise Database:

Lockheed Martin is not included in the UN Office of the High Commissioner for Human Rights (OHCHR) settlement business enterprise database, which maintains listings from the 2020, 2023, and 2025 iterations of the database. The OHCHR database focuses on construction, real estate, banking, and surveillance activities related to West Bank settlements, and its scope does not extend to defense contractors ^15.

Corporate Occupation and NGO Database Inclusions:

• UN A/HRC/59/23 (Albanese Report): Lockheed Martin is named among more than 60 companies in the UN Special Rapporteur’s report on the “economy of genocide” published in June 2025 ⁶⁹.

• DBIO V Report (November 2025): Lockheed Martin is mapped among 104 global companies across six complicity categories, including arms supply ¹⁰.

• PAX June 2024: Lockheed Martin is identified among six arms producers (Boeing, General Dynamics, Leonardo, Lockheed Martin, RTX, Rolls-Royce) selling weapons to Israel during the period 2019-2023 ¹¹.

• AFSC Investigate: Lockheed Martin is listed on the BDS (Boycott, Divestment, Sanctions) Divestment Shortlist ¹².

• Amnesty International September 2025: Lockheed Martin is named among 15 companies “contributing to Israel’s unlawful occupation, genocide or crimes under international law” ⁹.

Investment, Capital & Financial Exposure

Foreign Direct Investment in Israel:

Lockheed Martin operates a registered legal entity — Lockheed Martin Israel Ltd — incorporated under Israeli law and registered with the Israel Companies Registrar ¹³. The subsidiary is located at Museum Tower, Tel Aviv, led by CEO Joshua (Shiki) Shani, and functions as a business development, programme liaison, and government relations office ³. No manufacturing facilities, data centers, logistics hubs, or real estate holdings in Israel or occupied territories have been identified.

R&D and Innovation Centers:

No evidence has been identified of Lockheed Martin operating a dedicated research and development facility or innovation lab within Israel. Co-development activities with Israeli partners are conducted through contractual programme partnerships rather than Lockheed-owned facilities.

Offset Investment:

Lockheed Martin has invested over $4 billion with Israeli defense and aerospace industries since 2005 ¹. Investment in the past five years under the Umbrella Industrial Cooperation Agreement (UICA) totals $470 million ¹. Expected collaboration between Lockheed Martin and Israeli industries exceeds $6 billion ³. The UICA was extended through the end of 2029 in December 2025 ¹.

Parent and Beneficial Ownership:

Lockheed Martin is a publicly traded U.S. company listed on the New York Stock Exchange under the symbol LMT. No single shareholder holds 10% or more of the company’s equity. The largest institutional shareholders are Vanguard Group, BlackRock, and State Street. No Israeli-domiciled institutional investors have been identified ¹¹.

The Norwegian Government Pension Fund Global (GPFG) has excluded Lockheed Martin from its investment portfolio due to cluster munitions production under the fund’s product-based exclusion criterion ¹⁴.

The PAX financier matrix identifies BlackRock, Vanguard, State Street, Fidelity, Capital Group, T. Rowe Price, and major European financial institutions as holding material positions in Lockheed Martin. European institutions collectively hold approximately €26 billion in shares and bonds of these arms companies ¹¹.

Portfolio and Fund Exposure:

No corporate treasury position in Israeli sovereign bonds or Israel Bonds products has been disclosed in any Lockheed Martin filing. Underlying pension fund-level holdings in Israeli securities cannot be confirmed from public disclosures.

Operational Presence & Market Activity

Physical Footprint:

Lockheed Martin Israel Ltd serves as the registered legal entity, operating as a business development and programme liaison office in Tel Aviv ³¹³. No manufacturing plants, production facilities, warehouses, or retail locations exist in Israel or occupied territories. No operational presence in the West Bank, Gaza, or Golan Heights has been identified.

Employment and Tax Contribution:

The subsidiary maintains a small staff in a representative and liaison capacity. No precise headcount is publicly disclosed. The Israeli subsidiary is subject to standard Israeli corporate tax as a registered foreign subsidiary.

Market Positioning:

Israel is not characterized as a standalone revenue segment in Lockheed Martin annual reports; it is grouped within international and rest-of-world revenues. Israel is treated as a Foreign Military Sales (FMS) market and industrial cooperation partner, not a commercial consumer market.

The F-35I “Adir” programme represents the most prominent expression of the market relationship. Israel operates 48 F-35I aircraft with 27 on order (25 from the 2023 contract plus additional approval), projecting a fleet of 75 aircraft ¹⁵¹⁶¹⁷.

The third F-35 squadron (25 aircraft) is valued at approximately $3 billion, with delivery scheduled from 2028, funded via U.S. Foreign Military Financing ¹⁵. Israeli F-35 pilot feedback has been described by Lockheed Martin CEO James Taiclet as “worth many billions” to the company, as Israel has accumulated more F-35 flight hours than all other foreign F-35 partner nations combined ¹⁸.

Post-October 2023 Activity:

Emergency drawdown of U.S. stockpiles transferred to Israel following the October 7, 2023 attacks included Lockheed Martin-manufactured JDAM and Hellfire missiles. In May 2024, the Biden administration announced a hold on one specific shipment of 1,800 MK-84 and 1,700 MK-82 bombs, though other transfers including F-35 parts continued. In August 2024, an $8.7 billion military assistance package was announced following the International Court of Justice (ICJ) advisory opinion, with Foreign Military Financing (FMF) covering F-35 acquisitions. No formal restriction on arms transfers to Israel has been implemented under the Trump administration (2025), and accelerated FMS processing has been indicated ¹.

Corporate Structure & Foundational Ties

Founding and Incorporation History:

Lockheed Martin Corporation was formed in March 1995 via the merger of Lockheed Corporation (founded in 1912 in Burbank, California) and Martin Marietta (founded in 1961 in Bethesda, Maryland). No Israeli founding, no Israeli-origin operations, and no acquired Israeli brand identity has been identified.

Headquarters and Domicile:

The legal domicile is the State of Maryland, USA. Operational headquarters are located in Bethesda, Maryland, USA. No dual headquarters or registered principal office exists in Israel.

Group Attribution:

There is no parent company — Lockheed Martin operates as an independent publicly traded corporation. Lockheed Martin Israel Ltd is the sole confirmed Israeli subsidiary, with no identified sub-subsidiaries. Sikorsky Aircraft Corporation, a wholly-owned subsidiary acquired in 2015, supports Israeli operations of UH-60 Black Hawk helicopters via FMS, though no direct Sikorsky operational presence exists in Israel.

State and Institutional Linkages:

No Israeli state ownership stake or government board appointees have been identified. Approximately 97% of Lockheed Martin’s revenues are derived from the U.S. government, including direct contracts and FMS/FMF programmes. Under U.S. Foreign Military Financing, Israel receives approximately $3.8 billion annually in military assistance, a significant portion of which funds Lockheed Martin systems.

Lockheed Martin participates in the Industrial Cooperation Authority (ICA) framework administered by the Israeli Ministry of Defense. Offset commitments vary by contract, and the precise cumulative monetary value is not publicly disclosed.

Standard Maryland public company governance with an independent board applies; no golden shares, founder shares, or charter restrictions tie Lockheed Martin to the Israeli state or Israeli entities.

Profit Repatriation & Economic Contribution

Revenue Attribution:

Lockheed Martin does not publicly disclose Israel-specific revenue. Fiscal Year 2023 total net sales were approximately $67.6 billion, with international revenues approximately $10.7 billion. Based on Defense Security Cooperation Agency (DSCA) notifications and programme values, Israel-related F-35 deliveries, munitions, and sustainment likely represent several hundred million to the low single-digit billions of USD annually.

Profit Flows:

Profits generated on all international programmes flow to the U.S. parent entity via standard subsidiary-to-parent mechanisms. Lockheed Martin Israel Ltd, as a liaison subsidiary with minimal direct revenue-generating function, contributes negligibly to Israeli economic output via retained corporate profit. No identified flow of global profits into Israel via Israeli ownership exists.

Economic Ecosystem Contribution:

ICA and offset subcontracting generates economic contribution to the Israeli defense sector. Confirmed beneficiaries include Israel Aerospace Industries, Elbit Systems, and Rafael ¹³. The IAI wing production work — valued at approximately $2.5 billion contract for over 800 wing pairs — represents recurring production value transfer to the Israeli state-owned enterprise ². Technology transfer under F-35I integration rights represents transfer of technical capacity and economic opportunity to Israeli defense firms beyond standard work-share ⁶⁷.

Post-ICJ Advisory Opinion and Post-ICC Arrest Warrants:

Lockheed Martin did not publicly respond to inquiries from the Business and Human Rights Centre regarding the continuation of Israel-related programmes following the ICJ Advisory Opinion issued on July 19, 2024 ¹⁹. All major Lockheed Martin Israel-related programme activities continued without interruption following the ICJ Advisory Opinion ¹. The UICA was extended through 2029 in December 2025, well after the ICJ opinion.

No public announcement by Lockheed Martin of any review, suspension, or modification of Israeli programme relationships has been made following the ICC arrest warrants issued on November 21, 2024. The FY2024 10-K filing contains no disclosure of material changes to Israel-related programme activity ¹⁹.

End Notes