Lockheed Martin secures $35 billion Pentagon contract to expand THAAD interceptor output

The U.S. Department of Defense has awarded Lockheed Martin a multiyear contract valued at up to $35 billion to quadruple production of Terminal High‑Altitude Area Defense (THAAD) interceptors. The deal is intended to replenish missile‑defense stockpiles and accelerate output amid rising global tensions.

Separately, the Army issued an $8.4 billion modification to increase the production ceiling for the Precision Strike Missile (PrSM), raising the total contract value with Lockheed Martin to $13.3 billion and extending the ordering period through fiscal year 2032. The modification supports early operational capability assets, follow‑on production, development and obsolescence management.

Both contracts are part of the Pentagon’s broader push to speed up munitions production, using framework agreements under the Department of War’s Acquisition Transformation Strategy to provide long‑term demand signals and strengthen the defense industrial base.