Lockheed Martin has secured the largest contract in the history of its Missiles and Fire Control unit. The contract, which spans fiscal years 2024 through 2026, involves the procurement of 1,970 Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE) interceptors and associated hardware for the U.S. and its allies.

According to Lockheed’s vice president for Integrated Air and Missile Defense, Jason Reynolds, the recent combat performance of the PAC-3 MSE has established it as a critical capability for America and its allies across the globe. This contract enables the company to deliver record numbers of PAC-3 MSE missiles in the coming years.

The agreement is a response to the U.S. government’s efforts to replenish missile stockpiles, particularly in light of increased demands arising from conflicts in Ukraine and the Middle East. The PAC-3 MSE utilizes hit-to-kill technology and is designed to defend against various threats, including tactical ballistic missiles, cruise missiles, hypersonic threats, and aircraft. A total of seventeen partner nations, including the U.S., currently deploy PAC-3 missiles.

Maj. Gen. Frank Lozano, leading the Army’s Program Executive Office Missiles and Space, remarked that the multi-year purchase allows for the procurement of a greater quantity of missiles and enables more rapid delivery, thereby accelerating inventory replenishment.

Lockheed Martin plans to deliver over 600 interceptors in 2025, ramping up production nearly two years ahead of the contract award, thanks to internal investments. Joseph Giunta, the Army’s senior contracting official at Redstone Arsenal, Alabama, emphasized that the contract exemplifies responsible stewardship of taxpayer resources.

Earlier this summer, Lockheed disclosed to Defense News its goal of producing 650 PAC-3 MSE missiles annually by 2027, with current production at about 550 missiles per year. The company is also exploring possibilities to increase throughput to 650 missiles per year sooner than initially planned. Reynolds articulated the intention to collaborate with the U.S. government to enhance production efficiency and potentially increase capacity to approximately 750 missiles per year by 2027.

While the government has not officially given production level targets, Reynolds noted that the trajectory suggests potential production could exceed 1,000 missiles in the coming years.

For context, the author of this report, Jen Judson, is a seasoned journalist specializing in land warfare for Defense News, with previous experience at Politico and Inside Defense. She holds a Master of Science in journalism from Boston University and a Bachelor of Arts from Kenyon College.