Lockheed Martin Secures Seven-Year Deal to Triple PAC-3 MSE Production to 2,000 Units
Lockheed Martin reached a seven-year Pentagon pact to ramp PAC-3 MSE interceptor production from 600 to 2,000 units annually for U.S. and allied forces. This follows a 60% output increase over two years with 620 interceptors delivered in 2025, securing long-term capacity investments and expected cost efficiencies.
1. Seven-Year PAC-3 MSE Production Expansion Agreement
Lockheed Martin has secured a landmark framework agreement with the U.S. Department of Defense to more than triple annual output of its PAC-3 Missile Segment Enhancement interceptors, ramping production capacity from roughly 600 units today to 2,000 per year over a seven-year period. The deal, which still requires congressional approval for the underlying supply contract, aims to bolster U.S. and allied air-defense stockpiles in response to sustained high demand driven by conflicts in Europe and the Middle East.
2. Recent Production and Delivery Performance
Over the past two years, Lockheed Martin has increased PAC-3 MSE production capacity by over 60%, delivering 620 interceptors in 2025—a 20% rise versus 2024. The company currently supplies 17 nations with its PAC-3 family, and management expects the new long-term production commitment to generate significant operational efficiencies, driving down unit costs and improving gross margins in its Missiles and Fire Control business segment.
3. Upcoming Fourth-Quarter and Full-Year 2025 Earnings Webcast
Lockheed Martin will webcast its fourth-quarter and full-year 2025 earnings results on January 29, 2026, at 8:30 a.m. ET. Jim Taiclet, chairman and CEO; Evan Scott, CFO; and Maria Ricciardone, VP of Investor Relations, will discuss financial performance, program updates—including the PAC-3 MSE expansion—and field audience questions. Presentation materials and an on-demand replay will be available on the company’s investor website through mid-February.