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Jim Taiclet Chairman, President & CEO at Lockheed Martin Corporation | Lockheed Martin Corporation

U.S. Army awards Lockheed Martin $9.8 billion missile defense contract

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Lockheed Martin has received a $9.8 billion contract from the U.S. Army to produce 1,970 Patriot Advanced Capability – 3 Missile Segment Enhancement (PAC-3 MSE) interceptors and related hardware. This agreement represents the largest contract in the history of Lockheed Martin’s Missiles and Fire Control division.

"PAC-3 MSE’s recent combat performance solidified it as a must-have capability for America and its allies around the world," said Jason Reynolds, vice president and general manager of Integrated Air and Missile Defense at Lockheed Martin. "With this contract, we’ll be delivering record numbers of PAC-3 MSE for years to come, ensuring our customers have the advanced missile defense solutions they need to defend what matters most.”

Lockheed Martin is increasing production rates for PAC-3 MSE to meet growing demand, with more than 600 interceptors scheduled for delivery in 2025—an annual milestone reached through early investments that accelerated manufacturing nearly two years ahead of this contract award.

The PAC-3 MSE interceptor is designed to counter ballistic missiles, cruise missiles, hypersonic threats, and airborne targets using direct impact technology rather than traditional blast fragmentation. The system is currently used by 17 partner nations alongside the United States.

Lockheed Martin states that it remains committed to providing proven defense solutions as global security challenges continue to develop.

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