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Pentagon awards Lockheed Martin up to $53.86B for PAC-3 MSE
The contract brings the multiyear PAC-3 deal to $58.62B, after an April award of $4.7B, as the company plans to expand PAC-3 MSE capacity and hiring by the end of 2030.
Lockheed Martin is set to receive a large new Pentagon contract for PAC-3 Missile Segment Enhancement interceptors, with the Department of War awarding a seven-year, up to $53.86 billion undefinitized contract action on July 29, according to Yahoo Finance.
Including an earlier $4.7 billion award from April, the multiyear deal totals up to $58.62 billion, the outlet said.
The demand backdrop is tied to depleted US inventory, with the CSIS report cited by Yahoo Finance estimating fewer than 800 Patriot missiles remain in US stockpiles after losing 65% of a prewar 2,330 count during the Iran conflict, leaving about four years of production at prior output to cover burn through in under three months.
To respond, Lockheed plans to triple PAC-3 MSE production capacity by the end of 2030 and grow its Camden, Arkansas workforce from 1,200 to about 1,850 employees, while also investing $8 billion to $9 billion in facilities through 2030 and positioning a lower-cost PAC-3 Adapted Capability Effector as a complementary option. The outlet also notes Lockheed’s concentration risk, saying about 72% of 2025 sales came from the US government, with the F-35 program representing roughly 27% of revenue.