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Lockheed Martin $4.7 billion PAC-3 MSE Contract

PAC-3 launch [© Lockheed Martin]

Lockheed Martin secures $4.7 billion contract for PAC-3 MSE (Missile Segment Enhancement) accelerated production.

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Press Release, Dallas TX, 10 April 2026: The US government awarded Lockheed Martin a multibillion-dollar contract to continue critical accelerated production of PAC-3 Missile Segment Enhancement (MSE). The $4.7 billion undefinitised contract action (UCA) enables Lockheed Martin to advance production acceleration and deliver record numbers of combat-proven interceptors for American and allied forces this year.

The contract follows the landmark framework agreement signed with the Department of War (DoW) on Jan. 6 to ramp up PAC-3 MSE production as part of the administration’s Acquisition Transformation Strategy, and a decisive step that gives our warfighters an unmatched defensive shield.

PAC-3 MSE is the world’s undisputed advanced air defence missile, providing a critical shield against a wide range of threats. Its performance has been proven in operations including Operation EPIC FURY, where it continues to successfully defend forces and infrastructure. Today’s announcement adds government funding to what industry has already invested to maintain strong munitions stockpiles, ensuring America and its allies continue to keep adversaries at bay.

“We are answering the nation’s call with urgency and partnering with the DoW to accelerate PAC-3 MSE production faster than ever before,” said Tim Cahill, president, Lockheed Martin Missiles and Fire Control. “Our investments in our facilities, workforce and supply chain ensure we can deliver at scale and with speed. With the right tools, proven processes and skilled employees in place, we are positioned to deliver a record number of munitions in support of the warfighter and our allies.”

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