{"url_path":"/sec/mpx/10-q/2026/item-1a","section_key":"item-1a","section_title":"Item 1A RISK FACTORS","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-08","source_url":"https://www.sec.gov/Archives/edgar/data/1129155/0001104659-26-057814-index.html","accession_number":"0001104659-26-057814","cik":"0001129155","ticker":"MPX","issuer_name":"MARINE PRODUCTS GROUP, LLC","edgar_url":"https://www.sec.gov/Archives/edgar/data/1129155/0001104659-26-057814-index.html","primary_entity_key":"0001129155","primary_entity_name":"MARINE PRODUCTS CORP"},"word_count":451,"has_tables":true,"body_markdown":"Item 1A. RISK FACTORS\n\nExcept as set forth below, there have been no material changes from the risk factors previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.\n\n​\n\n**The ongoing conflict involving Iran, the blockage of the Strait of Hormuz and resulting elevated oil prices could materially adversely affect our business, financial condition and results of operations**\n\n​\n\nWe are currently experiencing an armed conflict involving Iran in the Middle East, an actual blockage of the Strait of Hormuz and elevated global oil prices, any of which, and especially all of which together, could materially adversely affect our business, financial condition and results of operations. The Strait of Hormuz, a critical transit point for a significant portion of the world’s crude oil supply, is presently blocked, and global oil markets have reacted with oil prices at recent highs. These conditions have led, and may continue to lead, to significant increases in fuel prices for our dealers and retail customers. Elevated and volatile fuel costs can negatively impact demand for our products by increasing the overall cost of boat ownership and use, reducing discretionary spending on recreational boating and causing consumers to delay or forego purchases or upgrades. Higher fuel prices may also reduce utilization of existing boats, which can negatively affect dealer profitability, dealer inventory decisions and trade-in activity, thereby adversely impacting our sales volumes and pricing.\n\n​\n\nIn addition, the current conflict involving Iran and related geopolitical instability are contributing to broader commodity and supply chain disruptions that increase our product costs. Many of the raw materials, components and finished goods used in our manufacturing operations, including resins, fiberglass, foam, metals, electronic components and propulsion systems, are sensitive to changes in energy and transportation costs, as well as to global shipping capacity and routing. The actual closure and blockage of the Strait of Hormuz have increased, and may continue to increase, shipping transit times, freight rates and insurance costs for us and our suppliers, including on routes that do not directly transit the Strait, due to knock-on effects on global logistics networks. These conditions may result in higher input costs, parts shortages, delivery delays and reduced production efficiency. Although we may attempt to mitigate these impacts through pricing actions, alternative sourcing or adjustments to production, there can be no assurance that we will be able to fully offset higher costs or maintain our margins without adversely affecting demand. If the current blockage of the Strait of Hormuz and related oil price increases persist or worsen, our business, financial condition and results of operations could be materially adversely affected.\n\n​\n\n​\n\n​\n\n25\n\n[Table of Contents](#TOC)\n\n**MARINE PRODUCTS CORPORATION AND SUBSIDIARIES**\n\n​"}