U.S. Army Invests $9.8B in Lockheed Martin PAC-3 MSE to Expand Missile Defense
- Ritambhara K
- Sep 16
- 3 min read

The U.S. Army has awarded Lockheed Martin a $9.8 billion contract for the production of nearly 2,000 Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE) interceptors along with associated hardware. Covering the delivery of 1,970 interceptors, the deal represents the single largest contract in the history of Lockheed Martin’s Missiles and Fire Control business unit. The award highlights both the surging global demand for effective missile defense systems and the trust placed in the PAC-3 MSE’s combat-proven capabilities.
Jason Reynolds, vice president and general manager of Integrated Air and Missile Defense at Lockheed Martin, emphasized the system’s growing importance. “PAC-3 MSE’s recent combat performance solidified it as a must-have capability for America and its allies around the world,” Reynolds said. “With this contract, we’ll be delivering record numbers of PAC-3 MSE for years to come, ensuring our customers have the advanced missile defense solutions they need to defend what matters most.”
Scaling Up to Meet Global Demand
The Army’s multibillion-dollar order comes at a time of heightened demand for advanced missile defense, both in the U.S. and internationally. Lockheed Martin has been making strategic moves to prepare for such growth, ramping up production capacity ahead of time.
The company expects to deliver more than 600 PAC-3 MSE interceptors in 2025—the highest annual total in the program’s history. This production milestone is possible thanks to early internal investments that expanded manufacturing capacity nearly two years before the Army officially awarded this latest contract.
This forward-looking approach demonstrates Lockheed Martin’s recognition of global security needs and its commitment to supporting U.S. and allied defense requirements without delay. By accelerating production in advance, the company has positioned itself to meet both immediate and long-term demands for the PAC-3 MSE.
A Proven and Precise Interceptor
The PAC-3 MSE stands apart from earlier interceptor technologies due to its hit-to-kill approach, which destroys incoming threats through direct body-to-body impact. This method delivers exponentially greater kinetic energy on the target compared to traditional blast-fragmentation warheads, making it one of the most effective missile interceptors in the world.
The system has already been combat-proven against a wide range of threats, including ballistic missiles, cruise missiles, hypersonic weapons, and airborne platforms. Its proven track record on the battlefield has enhanced its reputation as a cornerstone of modern integrated air and missile defense strategies.
Currently, 17 partner nations—including the United States—have adopted the PAC-3 MSE for their national defense. This broad adoption underscores its role not only in U.S. military operations but also in the defense strategies of allies around the world. By enabling interoperability among partner nations, the system strengthens collective security frameworks and improves global readiness against emerging threats.
Responding to an Evolving Security Landscape
Today’s global security environment is characterized by rapidly evolving missile threats, ranging from advanced ballistic and cruise missiles to the emergence of hypersonic technologies. The PAC-3 MSE has become a vital capability for military forces seeking to counter these challenges effectively. Its versatility and adaptability make it a critical asset for both homeland defense and the protection of deployed forces.
Lockheed Martin’s continued innovation and commitment to readiness reinforce its position as a leading provider of integrated air and missile defense solutions. Beyond production and delivery, the company works closely with the U.S. government and international partners to ensure PAC-3 systems remain effective against emerging threats.
Commitment to Defense Partnerships
As this record-setting contract illustrates, Lockheed Martin remains dedicated to its long-standing partnership with the U.S. Army and allied nations worldwide. The company’s efforts to scale production, invest ahead of demand, and deliver on time reflect its broader mission to provide proven, ready-now defense solutions.
In an era marked by increasing uncertainty and complex security challenges, the PAC-3 MSE continues to demonstrate its value as one of the world’s most reliable and advanced missile interceptors. With the latest $9.8 billion contract, Lockheed Martin is not only supporting the U.S. Army but also reinforcing the defense capabilities of partner nations—ensuring that militaries around the globe are equipped to defend their territories and protect what matters most.