Lockheed Martin has signed a landmark framework agreement with the U.S. Department of War to significantly accelerate production of PAC-3® Missile Segment Enhancement (MSE) interceptors, a move aimed at meeting rising global demand for missile defense systems.
The seven-year agreement will increase annual production capacity at its Camden facility from approximately 600 interceptors to around 2,000, supporting U.S. forces as well as allied and partner nations. The deal is part of the Department of War’s Acquisition Transformation Strategy, which introduces long-term demand certainty to help the industry invest in its workforce, infrastructure and suppliers while improving efficiency and reducing costs.
Lockheed Martin has already increased PAC-3 MSE production by more than 60% over the past two years and delivered 620 interceptors in 2025, a more than 20% increase over the previous year. The new framework allows both the government and the company to benefit from cost savings enabled by predictable, sustained production.
The agreement comes as global demand for PAC-3 MSE interceptors continues to grow following recent real-world operations. It is also expected to strengthen the U.S. defense industrial base and create thousands of American jobs across the supply chain.
“We appreciate the Department of War’s leadership in advancing acquisition reform,” said Lockheed Martin Chairman, President and CEO Jim Taiclet. “This first-of-its-kind approach builds on years of advocacy and collaboration to bring commercial practices to major acquisition programs. We will create unprecedented capacity for PAC-3 MSE production, delivering at the speed our nation and allies demand while providing value for taxpayers and our shareholders.”
Lockheed Martin will continue working with the U.S. government toward an initial contract award, expected after final fiscal year 2026 congressional appropriations.
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