Lockheed Martin has secured a $9.8 billion contract from the U.S. Army for the production of 1,970 Patriot Advanced Capability-3 Missile Segment Enhancement interceptors and associated hardware. The award marks the largest contract received by the Missiles and Fire Control business unit to date and underscores continued trust in the system’s combat performance, Lockheed said Wednesday.
The defense contractor expects to deliver more than 600 interceptors in 2025, supported by early internal investments that increased production rates nearly two years before the award.
“PAC-3 MSE’s recent combat performance solidified it as a must-have capability for America and its allies around the world,” said Jason Reynolds, vice president and general manager of Integrated Air and Missile Defense at Lockheed Martin. “With this contract, we’ll be delivering record numbers of PAC-3 MSE for years to come, ensuring our customers have the advanced missile defense solutions they need to defend what matters most.”
Preceding $5.3B Production Contract
The latest award follows a $5.3 billion firm-fixed-price contract in July 2024 for PAC-3 missile production. The three-year deal, managed by the Army Contracting Command at Redstone Arsenal, Alabama, covers manufacturing work across more than 10 states including Alabama, Florida, New York, Texas and California, with completion expected by June 30, 2027.
The Army obligated the full amount using fiscal 2024 missile procurement and foreign military sales funds. The 2024 award came shortly after a $2.45 billion modification to a prior PAC-3 contract in April 2023.
Combat-Proven Interceptor
The PAC-3 MSE interceptor uses a hit-to-kill approach, delivering high kinetic energy to neutralize threats ranging from ballistic and cruise missiles to hypersonic and airborne targets. Seventeen partner nations, including the United States, have adopted the system for integrated air and missile defense.
