The U.S. Army awarded Lockheed Martin a multi-year contract worth $9.8 billion for the production of 1,970 Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE) interceptors and associated equipment. The agreement, signed at the company’s plant in Grand Prairie, Texas, covers fiscal years 2024 to 2026 and represents the largest contract in the history of Lockheed Martin’s Missiles and Fire Control division.
According to the official statement from the service, the goal is to ensure the supply of air defense systems for both the U.S. and its allies. “The recent combat performance of the PAC-3 MSE has established it as an essential capability for the United States and its allies worldwide,” said Jason Reynolds, Vice President and General Manager of Integrated Air and Missile Defense at Lockheed Martin. He added that, under this contract, “record quantities of PAC-3 MSE will be delivered over the coming years.”
The company expects to deliver more than 600 interceptors in 2025, a capacity achieved thanks to internal investments that increased production almost two years before the contract award.
The PAC-3 MSE is an interceptor designed to destroy aerial threats through direct impact, providing greater kinetic energy on the target than fragmentation-based systems. It has proven effective against ballistic, cruise, hypersonic missiles, and aircraft. Currently, 17 nations, including the United States, operate this system.
The contract also aligns with Washington’s strategy to strengthen the supply chain and replenish its arsenals amid rising demand driven by conflicts in Ukraine and the Middle East. “The multi-year purchase allows the Army to acquire more missiles for faster delivery, filling our inventory more quickly,” said Major General Frank Lozano, head of the Army’s Program Executive Office for Missiles and Space.
Joseph Giunta, a senior Army acquisition official at Redstone Arsenal, Alabama, highlighted that the agreement “reflects disciplined procurement and responsible management of taxpayer resources.”
A “back-and-forth” on arms shipments
The strengthening of arsenals comes after a period of tension regarding missile availability. In early June 2025, the Department of Defense partially suspended the shipment of precision munitions to Ukraine (though deliveries began in early July), including Patriot missiles, due to the depletion of U.S. strategic reserves.
The measure was reversed a few weeks later when President Donald Trump confirmed the resumption of shipments to Kyiv, in coordination with the European Union, which would finance the transfer. During a visit to Joint Base Andrews, the President stated: “We will send them Patriot missiles, which they urgently need, because Putin surprised a lot of people. He talks nicely and then bombs everyone at night. But there’s a small problem. I don’t like it.”
The U.S. administration clarified that the operation involves full reimbursement from the European Union. “Basically, we will send them various pieces of very sophisticated military equipment. They will pay 100% for it, and that’s the way we want it,” Trump added.
*Images for illustrative purposes only.
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