Key facts
- The U.S. Army awarded Lockheed Martin a contract modification worth up to $58.62 billion.
- The contract is for the production of PAC-3 Missile Segment Enhancement interceptors.
- This is one of the largest munitions contracts in recent years.
- The deal is the largest contract in Lockheed Martin Missiles and Fire Control history.
- The contract is for 1,970 PAC-3 MSE interceptors and associated hardware.
- Lockheed Martin plans to deliver approximately 618 missiles in 2025.
The U.S. Army has awarded Lockheed Martin Corp a contract modification valued at up to $58.62 billion for the production of PAC-3 Missile Segment Enhancement interceptors. This significant deal, announced by the Department of Defense and the company, marks one of the largest munitions contracts in recent years and is the largest in Lockheed Martin Missiles and Fire Control history.
The contract encompasses the production of 1,970 Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE) interceptors and associated hardware. This multi-year award is intended to provide a steady stream of missiles over the coming years, covering fiscal years 2024-2026, with production and delivery extending beyond that period. Lockheed Martin plans to deliver approximately 618 missiles in 2025, an increase driven by proactive internal investments to ramp up production rates.
Jason Reynolds, vice president and general manager of Integrated Air and Missile Defense at Lockheed Martin, noted the unprecedented demand signals from the U.S. Army, the Department of Defense, and international partners, highlighting the PAC-3 MSE's combat performance against challenging threats. The PAC-3 system is a "hit-to-kill" interceptor designed to take down ballistic, cruise, and hypersonic missiles through direct body-on-body contact. The U.S. Army stated that multi-year contracts offer long-term stability for suppliers and improve planning and resource allocation, benefiting both the government and industry partners.