Boeing Wins $14.7 Billion Lockheed Contract to Triple PAC-3 MSE Seeker Production

Boeing said on October 5, 2026, it was awarded a seven-year contract worth up to $14.7 billion by Lockheed Martin to scale production and deliver PAC-3 Missile Segment Enhancement (MSE) seekers. The deal allows Boeing to triple output of the missile's guidance component, which detects, tracks and helps intercept incoming targets. The PAC-3 MSE is a hit-to-kill interceptor used within the Patriot air defense system against ballistic missiles, cruise missiles and aircraft. In January, Lockheed announced a seven-year framework with the US Department of War to raise annual interceptor capacity to 2,000 units from about 600. The agreements are part of a broader push to prioritize weapons production over shareholder returns. Industry executives warn Congress has not yet appropriated funding, potentially delaying large-scale investment in components and facilities. Demand has surged as conflicts in Iran and Ukraine strain US stockpiles, prompting the Army in July to award Lockheed a contract worth up to $58.6 billion.