Lockheed Wins $35B THAAD Production Contract

On June 24, 2026, the U.S. government awarded Lockheed Martin (LMT) a seven-year undefinitized contract action valued at up to $35 billion to expand production of Terminal High Altitude Area Defense (THAAD) interceptors. The agreement is structured to increase output of these missile defense interceptors and is described as a key step in accelerating delivery of the system for the United States and allied customers.

The contract is intended to quadruple production of THAAD interceptors, providing what Lockheed Martin characterizes as a long-term demand signal for the program. By establishing a multiyear procurement, the award is designed to support higher manufacturing rates and to enable more predictable planning across the supply chain.

The THAAD award is cited as one of the first major multiyear procurement contracts executed under the Department of War's Acquisition Transformation Strategy. It represents one of the earliest full-scale transitions from a framework agreement to contract execution within this initiative, following a THAAD framework agreement signed in January between the Department of War and Lockheed Martin.

Lockheed Martin describes the contract as reflecting a shared vision to strengthen America's "Arsenal of Freedom" through a shift toward multiyear procurement. Company leadership links this approach to expanding production capacity and reinforcing the defense industrial base to deliver critical missile defense capabilities at greater speed and scale.

The award comes shortly after Lockheed Martin broke ground on a new Munitions Production Center in Troy, Alabama. This facility is part of a broader investment program totaling more than $9 billion through 2030, which includes more than 20 new or modernized facilities across the United States aimed at meeting increased munitions and missile defense demand.

In addition to the new Troy site, Lockheed Martin has recently opened a Next Generation Interceptor facility in Courtland, Alabama, and the Munitions Acceleration Center in Camden, Arkansas. These sites are positioned as key elements in supporting heightened production requirements associated with programs such as THAAD.

THAAD is described as a highly effective, combat-proven defense system against short-, medium- and intermediate-range ballistic missile threats. The system's interceptors are designed to engage incoming missiles, providing a layer of protection for deployed forces, population centers and critical infrastructure.

By targeting a fourfold increase in interceptor production, the new contract is intended to enhance availability of THAAD units to meet current and future missile defense requirements. The expanded industrial footprint and multiyear procurement structure are positioned to support sustained delivery of this capability to the U.S. and its allies.