Lockheed Secures $4.76 Billion Deal to Expand Patriot Missile Production

Lockheed Martin has secured another major Pentagon contract to ramp up production of critical munitions that have been heavily used in the war with Iran.

On April 9, the U.S. Army awarded Lockheed a $4.76 billion contract to produce PAC-3 Missile Segment Enhancement interceptors, according to a Department of War announcement. Deliveries are scheduled to run through June 2030.

The PAC-3 MSE is part of the Patriot air-defense family and is designed to shoot down tactical ballistic missiles, cruise missiles, and aircraft.

It is used in the U.S. Army’s primary medium- to high-altitude air-defense system and has become a key part of U.S. and allied missile-defense networks. Ukraine has relied on PAC-3s to protect energy and military infrastructure from Russia’s ballistic missile attacks, while the interceptor has also seen recent use in the Gulf against Iranian strikes.

Of the total award amount, about $264.96 million will come from the Army’s fiscal 2026 missile procurement funds, while the remaining roughly $4.5 billion will be financed through the Foreign Military Sales program, indicating that a substantial share of the order is intended for international buyers.

The award follows a series of high-profile Pentagon deals aimed at expanding munitions production, particularly weapons designed to counter missiles and drones.

Lockheed Martin announced on March 25 that it had reached a new seven-year agreement with the Pentagon to quadruple production capacity for the Precision Strike Missile, or PrSM. The surface-to-surface missile uses GPS guidance and can hit targets at ranges of about 250 miles.

On April 1, the Pentagon and Boeing signed an agreement to triple PAC-3 interceptor seeker production over the next seven years.

The latest missile awards also come as the White House pushes for a sharp increase in defense spending. In its fiscal 2027 budget proposal, the administration called for $1.5 trillion in defense funding, the largest such request in decades.

The proposed 44 percent increase in defense spending for fiscal 2027 “exceeds even the Reagan buildup,” according to the White House. The request includes funding for several Trump administration priorities, including $17.5 billion for the Golden Dome, $5 billion for the F-47 sixth-generation fighter, and an initial $1 billion in advance procurement for the Trump-class battleship.

Much of the planned increase in munitions spending, however, depends on a reconciliation package that includes $350 billion for defense, more than double the $150 billion included in last year’s measure. President Donald Trump has given congressional Republicans until June 1 to pass the bill.