Lockheed Martin wins $9.8bn US Army contract for PAC-3 MSE
Lockheed Martin has secured a $9.8bn contract from the US Army for Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE) interceptors.
The deal represents the “largest” award for Lockheed Martin’s Missiles and Fire Control branch, encompassing the production of 1,970 interceptors and accompanying hardware.
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Lockheed Martin integrated air and missile defence vice president and general manager Jason Reynolds said: “PAC-3 MSE’s recent combat performance solidified it as a must-have capability for America and its allies around the world. With this contract, we’ll be delivering record numbers of PAC-3 MSE for years to come, ensuring our customers have the advanced missile defence solutions they need to defend what matters most.”
The PAC-3 MSE interceptor is designed to destroy a variety of threats, including tactical ballistic missiles, cruise missiles, and aircraft. It has been battle-tested.
It is equipped with two-pulse solid rocket motor for increased altitude and range performance.
Lockheed Martin has initiated measures to escalate the production of PAC-3 interceptors in anticipation of growing demand.
The company projects to hit more than 600 interceptors’ delivered in 2025.
In November 2024, Lockheed Martin secured a contract modification valued at $752.3m to enhance the production capabilities of the PAC-3 MSE missiles.
To date, 17 nations have selected the PAC-3 system as their defence solution against incoming threats.
In May 2025, an industrial cooperation agreement was signed between Lockheed Martin España and Spain’s Ministry of Defense, which enables local industries within Spain to compete for opportunities in producing components for the PAC-3 MSE system.
