Lockheed Martin has awarded Boeing an approximately $14.7-billion contract that will support a major expansion in manufacturing PAC-3 MSE seeker units. The arrangement is expected to enable Boeing to triple seeker production and represents the implementation of a seven-year framework agreement announced in April with the Pentagon.The production increase is being driven by rising demand for Patriot interceptors. Boeing has responded by investing in its seeker manufacturing plant, modernizing production facilities and processes, and developing stronger supplier relationships to support higher output.PAC-3 MSE is the Patriot system’s hit-to-kill interceptor and is designed by Lockheed Martin to engage both aircraft and cruise and ballistic missiles. Stockpiles have faced increased pressure amid the continuing war in Ukraine and conflicts in the Middle East.The broader production plan was established under a January 2026 framework agreement between Lockheed Martin and the Pentagon, which targets an increase from 600 PAC-3 MSE missiles annually to approximately 2,000 over seven years. L3Harris, which provides propulsion systems for the interceptor, has also secured a $4.7-billion contract to increase production. Separately, Lockheed Martin introduced the lower-cost PAC-3 Adapted Capability Effector in July. The variant is intended to supplement PAC-3 MSE and provide a more affordable response to a broader set of air and missile threats, at less than half the MSE cost.
