Boeing is preparing to triple production of the seeker used on the PAC-3 Missile Segment Enhancement interceptor under an approximately $14.7-billion contract from Lockheed Martin. The agreement formalizes a seven-year framework arrangement announced in April between Boeing and the Pentagon and supports the US military’s Acquisition Transformation Strategy and Arsenal of Freedom initiative.To accommodate increased demand, Boeing has expanded its PAC-3 seeker manufacturing facility, upgraded production infrastructure and processes, and strengthened its supplier network. The PAC-3 MSE is Lockheed Martin’s advanced hit-to-kill interceptor for the Patriot air-defense system and is designed to defeat aircraft as well as cruise and ballistic missiles.Demand for the interceptor has increased because of sustained requirements generated by the war in Ukraine and expanding conflicts in the Middle East. A January 2026 framework agreement between Lockheed Martin and the Pentagon called for PAC-3 MSE production to increase from 600 missiles to approximately 2,000 over seven years—more than tripling output.L3Harris, a major subcontractor responsible for the interceptor’s propulsion system, has separately received a $4.7-billion contract to expand its production capacity. Lockheed Martin also introduced the lower-cost PAC-3 Adapted Capability Effector in July, intended to complement the PAC-3 MSE by addressing a wider range of air and missile threats at less than half the MSE’s cost.
