The U.S. Army has signed a $9.8 billion agreement with Lockheed Martin to build nearly 2,000 Patriot Advanced Capability–3 Missile Segment Enhancement (PAC-3 MSE) interceptors, along with launchers and support equipment. The company said it is the largest contract ever for its Missiles and Fire Control division.
Army officials described it as a multi-year procurement covering fiscal years 2024 through 2026. Its aim is to secure cost predictability, fill inventories faster, and provide stability for suppliers.
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Why is demand for PAC-3 missiles rising?
Lockheed Martin points to the PAC-3 MSE’s recent combat record as proof of its value for U.S. and allied militaries. The interceptor is designed to defeat a wide range of threats, including ballistic and cruise missiles, hypersonic weapons and aircraft.
The Defense Post reports PAC-3 relies on “hit-to-kill” technology, destroying incoming targets by direct impact. Each missile is about 16 feet long, 10 inches wide, and weighs around 820 pounds. Powered by a dual-pulse solid rocket motor, it can travel faster than Mach 4, reach altitudes of roughly 118,000 feet, and strike targets as far as 75 miles away.
The purchase comes shortly after some high-profile conflicts in Ukraine and the Middle East that saw missile stockpiles depleted.
According to Lockheed Martin, 17 countries currently field the system as part of their layered air defenses.
How will production expand?
Lockheed Martin said it began expanding production capacity almost two years before the Army award. For the first time, the company expects to deliver more than 600 interceptors in 2025, aided by a new 85,000-square-foot plant in Camden, Arkansas.
Jason Reynolds, vice president and general manager of Integrated Air and Missile Defense at Lockheed Martin, said the award ensures “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.”
Maj. Gen. Frank Lozano, who oversees the Army’s Program Executive Office Missiles and Space, said multi-year contracts like this allow the service to procure larger quantities of missiles for faster delivery, benefiting both the military and industry partners.
What is the broader context?
The Army awarded Lockheed Martin contracts worth $5.2 billion in 2024 and $2.4 billion in 2023, showcasing a rising demand. Lockheed Martin says PAC-3 MSE’s recent combat performance has made it a “must-have” for the U.S. and allies, and the new awards show its growing role against advanced missile threats.
