Boeing triples PAC-3 seeker production in $14.7 billion deal

Boeing has secured a $14.7-billion contract with Lockheed Martin to triple production of the PAC-3 Missile Segment Enhancement (MSE) interceptor’s seeker. This deal formalizes a seven-year framework agreement announced earlier this year, aligning with the Pentagon’s Acquisition Transformation Strategy and Arsenal of Freedom initiative.

To meet rising demand, Boeing has expanded its PAC-3 seeker factory, modernized facilities, and strengthened supplier relationships. Steve Parker, President and CEO of Boeing Defense, Space & Security, emphasized the company’s focus on quality and execution to deliver seekers at unprecedented levels.

The PAC-3 MSE, developed by Lockheed Martin, is an advanced interceptor used within the Patriot air defense system to counter aircraft, cruise, and ballistic missiles. Production has increased to address sustained demand from conflicts in Ukraine and the Middle East, with a framework agreement signed in January 2026 to boost output from 600 to approximately 2,000 missiles over seven years.

Key subcontractor L3Harris has secured a $4.7-billion contract to scale production of propulsion systems. Additionally, Lockheed Martin introduced the PAC-3 Adapted Capability Effector variant in July, offering a lower-cost interceptor to address a broader range of threats at less than half the cost of PAC-3 MSE.