The US Army has awarded Lockheed Martin a record-breaking $9.8-billion contract to manufacture nearly 2,000 Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE) interceptors and related hardware.
The deal, the largest ever for Lockheed’s Missiles and Fire Control division, includes 1,970 interceptors, launchers, tooling, and additional support equipment. Lockheed is preparing to ramp up deliveries, with production levels expected to exceed 600 interceptors annually starting in 2025.
This new contract follows two significant awards — a $5.2-billion order in 2024 and a $2.4-billion deal in 2023 — reflecting the Pentagon’s rising demand for advanced air and missile defense solutions.
To meet this surge, Lockheed had already invested in expanding its production base. A major step in this effort was the opening of an 85,000-square-foot facility in Camden, Arkansas, designed to accelerate PAC-3 output and strengthen long-term supply capacity.
