Lockheed Awarded Record $53.9 Billion Army Deal for PAC-3 Missiles
The seven-year multiyear procurement lifts the PAC-3 production contract's cumulative value to $58.62 billion and runs work through March 31, 2035, the Army said.
GRAND PRAIRIE, TEXAS — Lockheed Martin Corp., the largest U.S. defense contractor by sales, received a $53.9 billion Army modification to expand production of its PAC-3 interceptor missiles, the deepest single deal in the company’s history, as announced on war.gov.
The firm-fixed-price modification converts a one-year undefinitized contract action into a seven-year multiyear procurement, raising the not-to-exceed ceiling and bringing the contract’s cumulative face value to $58.62 billion, the Army said. The award set an estimated completion date of March 31, 2035, and obligated no funds at the time.
“Today, the U.S. government awarded Lockheed Martin a seven-year undefinitized contract action modification for up to $53.86 billion for PAC-3 Missile Segment Enhancement production to strengthen the arsenal of freedom,” the company said in a statement according to lockheedmartin.com.
The deal matters because the PAC-3 Missile Segment Enhancement is the interceptor at the core of the Patriot air-defense system, the weapon most in demand among U.S. allies facing missile and drone threats. Expanded output ties factory jobs and supplier orders to a single program for the better part of a decade.
Work will spread across at least 16 sites in 13 states, including Huntsville, Alabama; Camden, Arkansas; Grand Prairie and Lufkin, Texas; and Rocket Center, West Virginia. Army Contracting Command at Redstone Arsenal, Alabama, is the contracting activity. The geographic reach hands suppliers and payrolls in states from Vermont to California a stake in the program’s pace.
The modification dwarfs Lockheed’s prior benchmarks. It is the 41st contract awarded to the company in 2026 and lifts its year-to-date federal awards to about $88.1 billion. It stands as the largest contract ever awarded to the firm, surpassing a previous record of roughly $11.8 billion, and ranks as the largest Army contract of 2026.
For the average U.S. reader, the deal signals sustained federal spending on missile defense at a scale that anchors thousands of manufacturing jobs. The commitment locks in production capacity that supports both domestic stockpiles and foreign military sales.
Multiyear procurement of this kind has happened before, though rarely at this magnitude. Lockheed reported record backlog of $230 billion and second-quarter 2026 sales of $20.1 billion, up 11%, according to lockheedmartin.com. The company reported 2025 revenue of $75.05 billion and about 123,000 employees.
The next decision points rest with Army Contracting Command, which must definitize the undefinitized action and obligate funds in stages through the completion target of March 31, 2035. A date for the definitization of the contract has not been announced.
Big missile-defense bets have reshaped Lockheed before. The company emerged from the merger of Lockheed Corporation and Martin Marietta on March 15, 1995, a $10 billion deal that combined the makers of the Trident missile and the Titan rocket. Lockheed has ranked as the top contractor to the U.S. federal government since at least 2008. That standing, built on programs like the F-35 and now the PAC-3, has kept the Bethesda, Maryland, manufacturer at the center of Pentagon buying for three decades.
This contract represents the 41st contract awarded to Lockheed Martin Corp., in 2026, bringing the company’s total contract value for the year to $88,139,580,917. It is also the 70th Department of Defense contract awarded in Texas during 2026. This is the largest contract ever awarded to Lockheed Martin Corp., surpassing the company’s previous record of $11,762,911,991, and it is notable within the Army portfolio. Specifically, it is the largest Army contract awarded in 2026, at $53,859,843,289, while the year-to-date minimum stands at $9,051,490. Overall, this award was announced among 7 Department of Defense contracts issued nationwide on July 29, 2026.
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