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U.S. Army Awards Lockheed Martin $9.8B Contract to Bolster Missile Defense with PAC-3 MSE
September 8, 2025 | Lockheed MartinEstimated reading time: 1 minute
The U.S. Army awarded Lockheed Martin a $9.8 billion contract for the production of 1,970 Patriot Advanced Capability – 3 Missile Segment Enhancement (PAC-3 MSE) interceptors and associated hardware. This marks the largest contract in Lockheed Martin Missiles and Fire Control history and demonstrates the continued demand for and trust in this advanced, precise and proven interceptor.
"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 continuing to ramp production of PAC-3 to meet increased demand. The company is expected to deliver more than 600 interceptors in 2025 for the first time. This is a result of the company’s proactive steps to start the production ramp with significant internal investments to increase PAC-3 MSE production rates almost two years ahead of contract award.
PAC-3 MSE defends against incoming threats through direct body-to-body contact delivering exponentially more kinetic energy on the target than can be achieved with blast fragmentation mechanisms. The interceptor is combat proven against ballistic missile, cruise missile, hypersonic and airborne threats. 17 partner nations, including the U.S., have chosen PAC-3 to defend against incoming threats.
As the global security landscape continues to evolve, Lockheed Martin remains dedicated to providing proven, ready-now defense solutions to help the U.S. government and its allies defend their homelands.
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