Lockheed Martin to more than triple PAC-3 production under Pentagon deal.

Lockheed Martin will raise annual PAC-3 MSE interceptor production to about 2,000 from roughly 600 after signing a seven-year agreement with the Defense Department. The company said the increase follows recent production growth and the Pentagon's acquisition transformation strategy.

Lockheed Martin said it will raise annual production of its PAC-3 MSE interceptors to about 2,000 a year, up from roughly 600, under a seven-year agreement with the Defense Department. The PAC-3 MSE is described as a hit-to-kill interceptor used to defend against incoming ballistic missiles, cruise missiles and aircraft. Lockheed said it has already increased PAC-3 MSE production by more than 60% over the past two years. The company attributed the larger planned increase to the Defense Department's acquisition transformation strategy, which it said provides long-term demand certainty and supports industry investment. Key facts: - The new capacity target is about 2,000 PAC-3 MSE interceptors per year, compared with roughly 600 per year currently. - The change follows a seven-year agreement announced between Lockheed Martin and the Defense Department. - Lockheed noted it had increased PAC-3 MSE production by more than 60% in the previous two years. - The company linked the expansion to the Pentagon's acquisition transformation strategy, which it said enables investment and higher production rates. - Reporting cited that the Army awarded Lockheed nearly $10 billion in September to produce almost 2,000 PAC-3 missiles for fiscal years 2024–2026, and that the Pentagon has urged suppliers to raise production amid concerns about stockpiles, according to The Wall Street Journal. Summary: Raising planned annual output to about 2,000 interceptors would more than triple current annual production and follows recent production increases and a large multi‑year Army award. Lockheed said it is positioned to meet the agreement and expects to deliver above its stated capacity in coming years; specific timing details beyond the annual capacity figure were not provided.