US Army Awards Lockheed $58.6bn Patriot Missile Deal

The US Army has awarded Lockheed Martin a contract worth up to $58.6bn to produce PAC-3 MSE interceptor missiles for the Patriot air defense system, the Pentagon said.

The seven-year framework agreement comes as the wars in Ukraine and Iran strain US weapons stockpiles. Washington has supplied large quantities of military equipment to its allies while also using munitions in its own operations against Iran.

The deal replaces a one-year contract worth $4.7bn awarded in April and establishes a multiyear procurement plan covering fiscal years 2026 to 2032.

The Pentagon is also pressing defense contractors to accelerate production. President Donald Trump’s administration has urged companies to prioritize government contracts over shareholder payouts, while an executive order signed in January targets contractors that fall behind on government work while continuing to distribute profits.

Lockheed Martin said the agreement would allow it to triple PAC-3 MSE production capacity by the end of 2030. The company has previously said annual output would rise to 2,000 missiles.

It also plans to increase staffing at its plant in Camden, Arkansas, from about 1,200 to 1,850 employees.

The Center for Strategic and International Studies (CSIS) estimated this week that the US military has fewer than 1,000 Patriot interceptors and less than 250 Terminal High Altitude Area Defense (THAAD) interceptors. Both systems have been used extensively in the Middle East.

(Reuters, lud)