Lockheed Martin receives $4.7 billion contract for missile production

Lockheed Martin Corp. (NYSE: LMT) received a $4.7 billion contract from the U.S. government to accelerate production of PAC-3 Missile Segment Enhancement interceptors, according to a company statement.

The undefinitized contract action enables the company to increase production and deliver interceptors for American and allied forces. The agreement follows a framework deal signed with the Department of War on Jan. 6 as part of the administration's Acquisition Transformation Strategy.

"We are answering the nation's call with urgency and partnering with the DoW to accelerate PAC-3 MSE production faster than ever before," said Tim Cahill, president of Lockheed Martin Missiles and Fire Control.

Lockheed Martin has invested more than $7 billion since President Donald Trump's first term to expand capacity for priority systems, including approximately $2 billion dedicated to accelerating munitions production. The company recently broke ground on a Munitions Acceleration Center and opened a Rapid Fielding Center.

The contract represents the first agreement under the Department of War's munitions acceleration framework. The company previously announced framework agreements to quadruple production capacity of Terminal High Altitude Area Defense interceptors and Precision Strike Missiles.

PAC-3 MSE interceptors have been deployed in operations including Operation Epic Fury, where they defend forces and infrastructure against various threats.

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