Lockheed Martin to Invest Over $8 Billion Through 2030 to Expand Missile Production: PAC-3, THAAD, JATM and PrSM
Lockheed Martin is investing more than $8 billion through 2030 to expand missile production, modernize more than 20 facilities and hire workers, CEO Jim Taiclet said on the company’s third-quarter earnings call. Seven-year contracts for PAC-3 and THAAD interceptors underpin the expansion, which now includes the Joint Advanced Tactical Missile (JATM) and a new version of the Precision Strike Missile (PrSM). Defence Industry Europe reported it on Nov. 8, 2026.
Where the money goes
- 2 million square feet of added manufacturing space across eight sites over three years, including the munitions centre in Troy, Alabama.
- More than 3,000 people being hired and trained at Missiles and Fire Control (MFC) sites in 2026.
- Grand Prairie, Texas, growing to more than 735,000 square feet, with an automated production cell added under a services agreement with Hadrian.
Which programmes
- PAC-3: a seven-year contract signed in the third quarter was the largest contributor to quarterly backlog. CFO Evan Scott said its total value could reach $58.6 billion; that is a ceiling, not money spent.
- THAAD: a seven-year award came earlier in 2026.
- JATM: a framework agreement with the Department of War in the third quarter lets production step up ahead of a multiyear contract. Taiclet said Australia has committed to be the first international customer.
- PrSM Increment 2: moved from flight tests in March and August to a $1.2 billion production award in the same year.
Orders to suppliers
Lockheed is also placing orders to ease supplier bottlenecks: a $4.7 billion PAC-3 propulsion contract with L3Harris and, after quarter-end, a $14.7 billion Boeing contract to triple PAC-3 seeker production and a $1.6 billion Northrop Grumman contract.
How it is financed
Scott said flexible payment terms keep the expansion cash neutral for Lockheed. Per Taiclet, the frameworks set an agreed starting price with annual adjustments tied to an industry inflation index, and allow investment recovery if a future administration or Congress cuts volumes. Profit terms and schedules remain open for contracts still under negotiation. MFC sales and operating profit rose 24% in the third quarter, and the company expects segment sales to grow at a mid-teens compound annual rate over five years.
Not disclosed
- Annual output per programme.
- The year-by-year split of the investment.
- The signing date of the multiyear JATM contract.
RTX’s comparable expansion is covered in our $70 billion contracts story.
Source: Lockheed Martin third-quarter earnings call, as reported by Defence Industry Europe, Nov. 8, 2026.
