Lockheed Martin (NYSE:LMT) announced on April 10, 2026, that it has received a $4.7 billion undefinitized contract action (UCA) from the U.S. government to rapidly accelerate the production of PAC-3 Missile Segment Enhancement (MSE) interceptors.
The award is the first major contract under a new landmark framework designed to more than triple the production of advanced air defense munitions.
The agreement builds upon a strategic framework signed on January 6 under the Department of War’s (DoW) Acquisition Transformation Strategy.
This multi-year initiative aims to move the defense industrial base to a "wartime footing" by providing long-term demand certainty and enabling industry to scale manufacturing capacity at unprecedented speeds.
Under this plan, Lockheed Martin targets an increase in annual PAC-3 MSE output from approximately 600 units to as many as 2,000 interceptors over a seven-year period.
The PAC-3 MSE is a hit-to-kill interceptor capable of defending against tactical ballistic missiles, cruise missiles, and advanced aircraft.
Recent real-world deployments, including successes in Operation Epic Fury, have driven global demand to record highs among U.S. forces and international allies.
Lockheed Martin has invested more than $7 billion since the first Trump administration to expand capacity for priority defense systems.
This includes approximately $2 billion specifically dedicated to the acceleration of munitions production.
The company recently broke ground on its Munitions Acceleration Center and opened a Rapid Fielding Center to support the increased throughput requirements.