Boeing (NYSE: BA) entered a seven-year framework agreement with the U.S. Department of Defense to triple production of PAC-3 seekers, components that enable missile interceptors to identify and track threats.

The agreement supports the Pentagon's Arsenal of Freedom initiative to strengthen the defense industrial base. PAC-3 seekers are used in interceptors designed to counter aircraft, hypersonic weapons, and ballistic and cruise missiles.

Boeing has invested more than $200 million since 2024 to expand PAC-3 seeker production capacity in Huntsville, Alabama, including a 35,000-square-foot facility expansion. The framework allows for additional company investments throughout the production process.

"Across the nation and around the world, we're making significant investments in people and facilities to meet the evolving security needs of the United States and its allies," said Steve Parker, president and CEO of Boeing Defense, Space & Security.

The agreement enables Boeing to expand its workforce and create specialized manufacturing jobs. The company stated it follows a domestic supplier approach for the production process.

Boeing, the Defense Department and Lockheed Martin, which serves as the prime contractor for PAC-3 Missile Segment Enhancement systems, will begin production ramp-up immediately and work toward a multi-year contract award later this year.

Bob Ciesla, vice president of Boeing Precision Engagement Systems, said the company increased deliveries by more than 30% in 2025. The framework agreement positions Boeing to scale production of the seeker components while expanding its Huntsville operations.