US Army’s $9.8 billion PAC-3 MSE contract is largest ever for Lockheed Martin Missiles and Fire Control

The US Army has awarded Lockheed Martin a USD 9.8 billion (EUR 8.34 billion) contract for the production of 1,970 Patriot Advanced Capability – 3 Missile Segment Enhancement (PAC-3 MSE) interceptors and associated hardware, Lockheed Martin announced on 3 September 2025.

The contract is the largest in Lockheed Martin Missiles and Fire Control’s history and reflects the business’s continuing effort to ramp production of PAC-3 missiles to meet increased global demand for them. In Ukraine Patriot missiles are a vital defence against Russian missile and drone attacks, with PAC-3 rounds now able to be bought for Ukraine by European nations and Canada under the Prioritised Ukraine Requirements List (PURL) initiative.

Lockheed Martin is expected to deliver more than 600 interceptors in 2025 for the first time. This is a result of the company’s proactive steps to start the production ramp-up with significant internal investments to increase PAC-3 MSE production rates almost two years ahead of contract award.

The PAC-3 MSE round defends against incoming threats through direct body-to-body contact, delivering exponentially more kinetic energy onto the target than can be achieved with blast fragmentation mechanisms. The interceptor is combat proven against ballistic, cruise and hypersonic missiles as well as other airborne threats such as bomb-laden drones. Including the United States, 17 nations have the PAC-3 in their inventory.

“PAC-3 MSE’s recent combat performance solidified it as a must-have capability for America and its allies around the world,” Jason Reynolds, vice president and general manager of Integrated Air and Missile Defense at Lockheed Martin, was quoted as saying in a company press release. “With this contract we’ll be delivering record numbers of PAC-3 MSE for years to come, ensuring our customers have the advanced missile defence solutions they need to defend what matters most.”