Boeing [BA] signed a seven-year production framework with Lockheed Martin on April 1, 2026, to triple output of PAC-3 seekers—the guidance systems that enable U.S. and allied interceptors to detect and defeat hypersonics, ballistic missiles and cruise missiles.
The company received an undefinitized contract award worth approximately $14.7 billion for the seeker production ramp. Lockheed Martin is the prime contractor for the PAC-3 Missile Segment Enhancement (MSE). Final contract terms will be negotiated later in 2026.
Boeing has already invested over $200 million since 2024 to expand PAC-3 seeker production capacity in Huntsville, Alabama, including a 35,000-square-foot facility expansion.
Bob Ciesla, vice president of Boeing Precision Engagement Systems, said the company increased deliveries by over 30 percent in 2025. "We're excited for the opportunity to grow our highly skilled workforce and presence in Huntsville as production triples," Ciesla said.
Steve Parker, president and CEO of Boeing Defense, Space Security, said the framework "enables Boeing to produce and deliver more advanced seekers, enhancing the military's advantage."
The framework is part of the Department of War's broader "Arsenal of Freedom" initiative to expand the defense industrial base. The U.S. Secretary of War visited Boeing's Huntsville facility in December 2025, preceding the formal agreement announcement.
