Stock Markets April 9, 2026 05:56 PM

Lockheed Martin Secures $4.76 Billion PAC-3 MSE Production Award

Firm-fixed-price contract covers missile production and related services at 15 U.S. sites, with work scheduled through June 30, 2030

By Caleb Monroe LMT
Lockheed Martin Secures $4.76 Billion PAC-3 MSE Production Award
LMT

Lockheed Martin has been awarded a $4.76 billion firm-fixed-price contract by the U.S. Department of War to produce PAC-3 Missile Segment Enhancement missiles. The award funds manufacturing, management, technical planning, and related services, to be carried out across 15 locations, with an estimated completion date of June 30, 2030. Funding for the contract comes from fiscal 2026 missile procurement, including Army and Foreign Military Sales allocations. The Army Contracting Command at Redstone Arsenal, Alabama is the contracting activity under contract number W31P4Q-26-C-0013.

Key Points

  • Lockheed Martin received a $4.76 billion firm-fixed-price contract to produce PAC-3 Missile Segment Enhancement missiles, covering manufacturing and related services.
  • Work is allocated across 15 U.S. locations with an estimated completion date of June 30, 2030, affecting the defense manufacturing and aerospace sectors.
  • The contract is funded through fiscal 2026 missile procurement, with $264.96 million in Army funds and $4.50 billion in Foreign Military Sales funds obligated at award.

Lockheed Martin Corp. has been granted a $4.76 billion firm-fixed-price contract by the U.S. Department of War for the production of PAC-3 Missile Segment Enhancement missiles. The scope of the award encompasses not only missile manufacturing but also incidental services, hardware, equipment, technical planning, management, and other efforts tied to production.

Work under the contract will be distributed across 15 locations in the United States. The locations specified for performance are:

  • Huntsville, Alabama
  • Clearwater, Florida
  • East Aurora, New York
  • Rocket Center, West Virginia
  • Vergennes, Vermont
  • Hollister, California
  • Wichita, Kansas
  • Lake Mary, Florida
  • Pinellas Park, Florida
  • Camden, Arkansas
  • Chelmsford, Massachusetts
  • Grand Prairie, Texas
  • Lufkin, Texas
  • Ocala, Florida
  • Archbald, Pennsylvania

The contract carries an estimated completion date of June 30, 2030. Financially, the award is funded through fiscal 2026 missile procurement. At the time the contract was awarded, $264.96 million in Army funds and $4.50 billion in Foreign Military Sales funds were obligated to the contract.

The Army Contracting Command, Redstone Arsenal, Alabama, is listed as the contracting activity. The contract is identified by number W31P4Q-26-C-0013.


Summary of key terms

  • Contract type: Firm-fixed-price
  • Contract value: $4.76 billion
  • Program: PAC-3 Missile Segment Enhancement (MSE)
  • Locations: 15 U.S. sites named above
  • Estimated completion: June 30, 2030
  • Funding: Fiscal 2026 missile procurement - $264.96 million Army funds; $4.50 billion Foreign Military Sales funds
  • Contracting activity: Army Contracting Command, Redstone Arsenal, Alabama
  • Contract number: W31P4Q-26-C-0013

Context and implications

The award covers a broad set of production-related activities and designates a multi-site execution plan across the United States. The financial execution of the contract at award included both Army appropriations and Foreign Military Sales funds, which were obligated when the contract was issued.

Additional details not provided in the award notice include subsequent program milestones and any follow-on funding beyond fiscal 2026.

Risks

  • The contract's estimated completion date extends to June 30, 2030, leaving potential schedule risk over a multi-year production timeline, which impacts defense manufacturing and supply-chain planning.
  • Funding is specified as being through fiscal 2026 procurement funds, indicating uncertainty about funding commitments or requirements beyond that fiscal period for related programs.
  • Execution across 15 distinct locations introduces coordination and operational complexity, which may affect production efficiency and logistics for the defense and aerospace supply chain.

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