Federal News
Pentagon Quadruples Missile Production Capacity
March 26, 2026
The Pentagon has executed multiple multiyear and framework agreements with prime defense contractors Lockheed Martin, BAE Systems, and Honeywell Aerospace to rapidly expand production capacity for critical missile systems and components. These agreements, announced in March 2026, focus on quadrupling output of the Precision Strike Missile (PrSM) and Terminal High Altitude Area Defense (THAAD) interceptor seekers and interceptors. The contracts include significant investments in tooling, facility modernization, and testing equipment to secure supply chains and meet urgent operational demands driven by ongoing military engagements in the Middle East, particularly the conflict involving Iran.
- The Department of Defense is reallocating approximately $1.5 billion in previously approved funds to procure missile interceptors from Lockheed Martin and RTX, addressing stockpile shortages.
- Framework agreements span up to seven years, providing long-term demand assurances to contractors and enabling industrial base expansion.
- Honeywell Aerospace is investing $500 million to increase production of critical missile components such as navigation systems, actuators, and electronic warfare solutions.
- Procurement professionals should note the emphasis on rapid capacity expansion and modernization, signaling increased opportunities for suppliers supporting missile defense and precision strike systems.
- Contractors should evaluate capabilities in advanced manufacturing, supply chain resilience, and component production to align with these expanded requirements.
The Pentagon wants to shift roughly $1.5 billion in previously approved funding to buy critical missile interceptors from Lockheed Martin Corp. and RTX Corp.
— Jules Hurst, Acting Comptroller
They have agreed to quadruple Production of the Exquisite Class Weaponry in that we want to reach, as rapidly as possible, the highest levels of quantity.
— Donald Trump, President
We want greater magazine depth, we want greater inventory.
— Lt. Gen. Frank Lozano, Army Portfolio Acquisition Executive for Fires
Agencies
Department of Defense, Pentagon, Department of War, U.S. Army, U.S. Central Command
Vendors
Lockheed Martin, BAE Systems, Honeywell Aerospace, RTX Corp.
Contracts
, , $500 million
Locations
Sources
- Pentagon inks deal with BAE, Lockheed to quadruple THAAD seeker production · Defense News · Mar 25
- Pentagon announces major surge in missile production · Defense News · Mar 25
- Pentagon Wants to Shift Funds to Interceptors Amid Iran War (2) · Bloomberg Government News · Mar 25
- Pentagon, Lockheed sign plan to boost PrSM missile productionΒ - Breaking Defense · Breaking Defense · Mar 25
- DOD inks agreement with Lockheed Martin aimed at accelerating Precision Strike Missile production | DefenseScoop · DefenseScoop · Mar 25