Lockheed Martin has awarded Boeing an indefinite-quantity contract valued at about $14.7 billion to increase production and delivery of Patriot Advanced Capability-3 Missile Segment Enhancement seekers.
The award formalizes a seven-year production framework intended to triple Boeing’s PAC-3 MSE seeker output.
The production increase builds on a previously announced framework agreement with the U.S. Department of War aimed at accelerating delivery of the missile-defense capability.
Boeing-built seekers are incorporated into PAC-3 interceptors and provide the technology used to identify, track and engage incoming threats.
The systems are designed to support engagements against threats including hostile aircraft, hypersonic weapons, ballistic missiles and cruise missiles.
The approximately $14.7 billion contract action represents a significant expansion of Boeing’s role in the Patriot supply chain as the U.S. and allied nations seek higher production capacity for air and missile defense systems.
Boeing had already begun preparing for increased demand before receiving the latest award.
The company has made capital investments to expand its PAC-3 seeker manufacturing facility and has taken steps to strengthen supplier relationships as it builds a more scalable supply chain.
Boeing has also been modernizing manufacturing facilities with new technologies and improving production processes and controls intended to increase first-time quality.
Production ramp-up activities and hiring started earlier in 2026 following the announcement of the broader framework agreement.
Boeing expects the expansion to create hundreds of direct and indirect jobs in the Huntsville, Alabama, region.
The increased seeker output is intended to support the Department of War’s broader effort to expand the U.S. defense industrial base and accelerate production of high-priority military systems.
The initiative also aligns with the department’s Acquisition Transformation Strategy, which is focused on reducing the time required to deliver important capabilities to service members.
For Boeing, the award establishes a long-duration production framework around a component central to one of the world’s most widely deployed air and missile defense systems.
The PAC-3 MSE is designed to provide hit-to-kill defensive capabilities against increasingly sophisticated airborne and missile threats.
By tripling seeker production, Boeing and Lockheed Martin are seeking to create enough industrial capacity to support higher U.S. procurement requirements as well as demand from allied operators.
KEY QUOTES:
“Early investment and a relentless focus on quality and execution have positioned us to now deliver seekers at unprecedented levels in the near term, and we’re committed to building on that momentum. Our Boeing teammates could not be prouder of the role they play in protecting U.S. and allied service members, civilians and critical infrastructure worldwide.”
Steve Parker, President and CEO of Boeing Defense, Space & Security
