Boeing lands $14.7 billion Lockheed Martin contract for missile components

Boeing has secured a major contract from Lockheed Martin worth up to $14.7 billion. The deal, announced on Monday, spans seven years and focuses on scaling production and delivering PAC-3 Missile Segment Enhancement (MSE) seekers. These components are crucial for the Patriot air defense system, which is designed to intercept ballistic missiles, cruise missiles, and aircraft.

The contract will enable Boeing to triple its production of PAC-3 MSE seekers, which guide the missiles to detect, track, and intercept incoming threats. This expansion aligns with a broader initiative by the Trump administration to prioritize weapons production over shareholder returns. In January, Lockheed Martin had already announced a framework agreement with the US Department of War to increase the annual production capacity of PAC-3 missile interceptors from about 600 to 2,000 units per year.