US Army Awards Lockheed Martin $9.8 Billion Contract for New PAC 3 MSE Missiles

The award constitutes the largest order in Lockheed Martin’s Missiles & Fire Control division, covering 1,970 PAC 3 Missile Segment Enhancement interceptors for US and allied forces.

 

Sept. 5, 2025

 

The U.S. Army’s Program Executive Office for Missiles and Space, in coordination with the Army Contracting Command–Redstone Arsenal, has definitized a multi-year contract action awarding Lockheed Martin Missiles and Fire Control a $9.8 billion production contract spanning fiscal years 2024 through 2026.

 

Under the agreement, Lockheed Martin will manufacture 1,970 Patriot Advanced Capability‑3 Missile Segment Enhancement (PAC‑3 MSE) interceptors and associated hardware. This marks the largest contract in the history of Lockheed Martin’s Missiles and Fire Control business segment.

 

The interceptors are slated for deployment by the U.S. Army and several allied nations, with the Navy also planning integration of these missiles into its ship-based air defense systems.

 

The PAC‑3 MSE employs hit‑to‑kill technology, offering enhanced kinetic energy impact capabilities over traditional blast‑fragmentation interceptors, and is designed to counter ballistic missiles, cruise missiles, hypersonic threats, and airborne targets.

 

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