Boeing is set to triple production of the PAC-3 Missile Segment Enhancement (MSE) interceptor’s seeker under an approximately $14.7-billion contract from Lockheed Martin.
The deal formalizes a seven-year framework agreement announced in April between Boeing and the Pentagon, in support of the US military’s Acquisition Transformation Strategy and Arsenal of Freedom initiative.
To meet surging demand, Boeing has invested to expand its PAC-3 seeker factory, modernize facilities and processes for efficient production, and strengthen relationships with suppliers.
“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,” said Steve Parker, President and CEO of Boeing Defense, Space & Security.
PAC-3 MSE
Lockheed Martin, the program’s prime contractor, developed the PAC-3 MSE as an advanced, hit-to-kill interceptor used within the Patriot air defense system to defeat aircraft, as well as cruise and ballistic missiles.
PAC-3 MSE interceptor stocks have come under pressure amid sustained demand from the war in Ukraine and expanding conflicts in the Middle East.
Lockheed Martin and the Pentagon signed a framework agreement in January 2026 to more than triple production over the next seven years, increasing PAC-3 MSE output from 600 to approximately 2,000 missiles.
Key subcontractor L3Harris, which supplies the interceptor’s propulsion systems, has subsequently secured a $4.7-billion contract to scale production.
In addition, Lockheed unveiled the lower-cost PAC-3 Adapted Capability Effector variant in July as a complementary interceptor designed to help militaries address a broader range of air and missile threats at less than half the cost of PAC-3 MSE.
