Lockheed Martin and U.S. Government Reach Historic Deal to Turbo‑Charge PAC-3® Missile Segment Enhancement (MSE) Production for U.S. and Allies
In a move that underscores the urgency of today’s global security environment, Lockheed Martin has signed a landmark framework agreement with the U.S. government to dramatically accelerate the production and delivery of the PAC-3® Missile Segment Enhancement (MSE).
This transformative partnership will increase annual capacity from approximately 600 to 2,000 in a seven-year agreement, giving U.S. forces, allies and partner nations the speed, precision and volume they need to defend against evolving threats. Thousands of additional American jobs will be created across the PAC-3 program to support this more than triple capacity increase.
The agreement is a direct outcome of the Department of War’s new Acquisition Transformation Strategy, a sweeping reform initiative that is the most significant overhaul of U.S. defense procurement in decades. By streamlining processes and aligning incentives, the strategy aims to get highly capable technology into the hands of service members faster than ever before.
Lockheed Martin is well-positioned to fulfill this agreement, having recently increased PAC-3 MSE production by more than 60% over the past two years. In 2025, Lockheed Martin delivered more than 600 PAC-3 MSEs, a 20% increase from the previous year.
Lockheed Martin is fully engaged with the Pentagon to accelerate solutions, strengthen the defense industrial base and ensure we continue delivering the combat‑proven capabilities our warfighters depend on.
Global demand for Lockheed Martin’s offensive and defensive systems has reached an unprecedented level given battlefield performance, combined with an urgent need for rapid, precise and scalable solutions. The company delivered more than 24,000 Missiles and Fire Control products to the United States and its allies in 2025 – a testament to the scale of the challenge and the resolve to meet it.
“We appreciate the Department of War’s leadership in advancing acquisition reform,” said Lockheed Martin Chairman, President and CEO Jim Taiclet. “This first-of-its-kind approach builds on years of advocacy and collaboration to bring commercial practices to major acquisition programs. We will create unprecedented capacity for PAC-3 MSE production, delivering at the speed our nation and allies demand while providing value for taxpayers and our shareholders.”