US missile defense production expansion

The United States is awarding significant defense contracts to bolster missile defense inventories and interceptor production.

In early October 2026, Boeing received an undefinitized contract worth up to $14.7 billion from Lockheed Martin to increase production of seekers for the PAC-3 Missile Segment Enhancement (MSE) interceptor. This seven-year deal aims to support air defense capabilities for Western allies, with Boeing tripling its seeker output following investments in its Huntsville, Alabama, facility to replenish stockpiles used in conflicts in Ukraine and the Middle East.

Shortly thereafter, Raytheon, an RTX business, secured a contract valued at up to $6.3 billion for the production and sustainment of Standard Missile-3 Block IB (SM-3 IB) interceptors. The five-year agreement with the U.S. Department of Defense includes options to extend for an additional two years. The SM-3 Block IB is designed to defeat short- to intermediate-range ballistic missiles during their midcourse flight phase. This contract is intended to support the urgent replenishment of missile defense inventories for the U.S. Navy, the Missile Defense Agency, and international partners. Production is slated for facilities in Tucson, Arizona, and Huntsville, Alabama. Raytheon President Phil Jasper stated the award underscores the company’s commitment to increasing the production of critical munitions to ensure customers have necessary defensive capabilities.