The U.S. Army has signed a $9.8 billion multi-year contract with Lockheed Martin for the production of Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE) missiles. This marks the largest contract ever awarded to the company’s Missiles and Fire Control division.
Under the agreement, approximately 1,970 PAC-3 MSE missiles will be produced, covering fiscal years 2024–2026. Lockheed Martin stated that deliveries will occur steadily over the coming years. Last year, a $4.5 billion deal was signed for 870 missiles, and the new contract aims to increase production capacity to an average of 550 missiles per year.
Lockheed Martin executive Jason Reynolds commented:
“We are receiving unprecedented demand from the U.S. Army, the Department of Defense, and international partners. Events in Ukraine and the Middle East have once again highlighted PAC-3’s unique capability against complex threats.”
The PAC-3 MSE is an advanced interceptor system operating on a “hit-to-kill” principle, designed to directly neutralize ballistic missiles, cruise missiles, and hypersonic threats.
