Overview
- The agreement, billed as part of the Pentagon’s Acquisition Transformation Strategy, provides long-term demand certainty and a collaborative financing model to accelerate production.
- Lockheed Martin plans capacity investments and cost-savings sharing with the government after lifting PAC-3 MSE output more than 60% in two years and delivering 620 interceptors in 2025.
- Rising demand follows recent combat use and broader air-defense needs, with the Patriot system fielded by the United States and 17 partner nations, including heavy Ukrainian employment.
- The scale-up is expected to add thousands of U.S. supply‑chain jobs and bolster the resilience of the munitions industrial base.
- Lockheed shares rose about 3.6% on the news, and the move follows a roughly $9.8 billion multiyear award in September 2025 covering nearly 2,000 interceptors for FY2024–2026.