Lockheed Martin has secured a $4.76 billion contract from the US Army to produce PAC-3 Missile Segment Enhancement (MSE) interceptors, along with associated equipment and support services.
The firm-fixed-price agreement is largely funded through foreign military sales worth $4.49 billion, with an additional $265 million allocated from US Army funds to enhance stockpiles and operational readiness. Production will take place across multiple US locations, including Huntsville, Alabama; Clearwater, Florida; East Aurora, New York; and other sites, with completion expected by June 30, 2030.
The PAC-3 MSE is an advanced version of the Patriot system’s interceptor, equipped with a dual-pulse rocket motor that extends range and improves maneuverability. It incorporates enhanced hit-to-kill technology capable of intercepting ballistic and cruise missiles, aircraft, and unmanned aerial systems.
The system is widely used by US allies such as Bahrain, Poland, and Ukraine. In response to growing global demand, Lockheed Martin is scaling production capacity, increasing annual output from 600 to approximately 2,000 missiles following a major Pentagon agreement signed earlier this year.
To support this expansion, the company has partnered with international firms including Germany’s Diehl Defence and Spain’s Tecnobit-Grupo Oesía and Sener to strengthen its supply chain.
