Boeing to Triple PAC-3 MSE Seeker Production in $14.7 Billion Deal

Boeing has secured a $14.7 billion contract from Lockheed Martin to significantly expand the production of seekers for the PAC-3 Missile Segment Enhancement (MSE) missiles. These seekers are a critical component in the anti-ballistic missile system, acting as a bottleneck in current production due to their scarcity. The contract, part of a seven-year framework agreement signed earlier this year, will enable Boeing to triple its manufacturing capabilities through 2035.

The deal supports a larger $58.6 billion contract Lockheed Martin received from the Pentagon to increase PAC-3 MSE production. The seeker component ensures precise targeting of ballistic missiles and is currently only produced at Boeing facilities in the U.S., limiting supply. There are no indications that production will be moved outside the country.

The production ramp-up will occur gradually over the next seven years, focusing on medium- and long-term supply needs. This initiative aims to address one of the most significant bottlenecks in the production of Patriot interceptors, as the number of seekers directly impacts the number of missiles that can be manufactured.

This development follows other recent Pentagon agreements to boost missile production, including deals with Raytheon to increase output of AIM-120 and SM-6 missiles.