U.S. Army Awards Lockheed Martin $59 Billion Patriot Missile Contract

The United States Army awarded Lockheed Martin a contract worth approximately $59 billion to triple the production of Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE) interceptors. The agreement converts a previous one-year deal into a seven-year procurement plan spanning fiscal 2026 through 2032, with the goal of increasing annual output from 600 to approximately 2,000 missiles by 2030.

This surge in procurement follows the depletion of munitions stockpiles during conflicts in Iran and Ukraine. To support this ramp-up, Lockheed Martin will hire 650 additional workers at its production facility in Camden, Arkansas, and invest between $8 billion and $9 billion by 2030 to modernize more than 20 U.S. facilities.

The initiative aligns with broader efforts by the administration of Donald Trump to mobilize the U.S. defense industrial base, including the invocation of the Defense Production Act and a January executive order targeting underperforming contractors. Parallel efforts include a $35 billion deal to quadruple THAAD interceptor production and a framework agreement with RTX to increase Tomahawk cruise missile production from 60 to 1,000 units annually. Additionally, L3Harris announced it would accelerate the production of solid rocket motors for both PAC-3 MSE and THAAD missiles.