Lockheed Martin to Triple Patriot Missile Production Capacity

• Production has already increased 60% over the past two years, with 620 units delivered in 2025, demonstrating accelerating demand prior to this agreement
• In September 2025, Lockheed received the largest-ever order for Patriot missiles with a contract for 1,970 units
• Initial contract award is expected in final fiscal year 2026 Congressional appropriations, with full implementation of the tripled capacity occurring over the seven-year agreement period

Summary: Lockheed Martin to Triple Patriot Missile Production Capacity

Key Development:

Lockheed Martin announced a seven-year agreement with the U.S. Department of Defense to significantly expand production of PAC-3 (Patriot Advanced Capability) missile interceptors. Annual production capacity will increase more than three-fold from approximately 600 units to 2,000 units per year.

Production Metrics:

• Current capacity: ~600 units annually
• Target capacity: 2,000 units annually
• 2025 deliveries: 620 units
• Production has increased 60% over the past two years

Market Context:

The expansion responds to growing global demand driven by heightened geopolitical tensions and allied nations strengthening air defense capabilities. Lockheed Martin currently supplies PAC-3 systems to the U.S. and 16 other countries, including Sweden, Qatar, Japan, and Poland. The Patriot system has been among weapons supplied to Ukraine by Western allies.

Financial Details:

In September 2025, the Bethesda, Maryland-based defense contractor received its largest-ever order for 1,970 Patriot missiles. An initial contract award related to the production expansion is expected in fiscal year 2026 Congressional appropriations.

Market Implications:

This substantial capacity increase signals sustained long-term demand for advanced air defense systems, positioning Lockheed Martin for significant revenue growth in its missiles and fire control segment. The multi-year agreement provides visibility and stability for the company's defense portfolio amid ongoing global security concerns. The tripling of production capacity represents a major strategic investment in response to evolving defense requirements worldwide.