Key Takeaways
- • Lockheed Martin's Missiles and Fire Control facility in Grand Prairie, Texas was awarded $77 million in defense contracts in February 2026, including a $43.5 million modification contract for PAC-3 MSE missile system production.
- • The company secured a $9.8 billion multi-year Army contract in September 2025 to triple PAC-3 missile annual production capacity from 620 to 1,970 units per year—the largest contract in the Missiles and Fire Control unit's history.
- • PAC-3 MSE missiles, proven hit-to-kill interceptors in recent combat, are in demand across 16 partner nations including Ukraine, driving sustained production expansion and capital investment.
- • Lockheed Martin opened an Advanced Manufacturing Technology Center (AMT Center) in Grand Prairie in October 2024, integrating software, robotics, and advanced manufacturing methods to support the production ramp.
- • The facility expansion reflects Pentagon prioritization of air and missile defense capabilities amid geopolitical tensions and allied demand for U.S. defense systems.
Summary
Lockheed Martin's Missiles and Fire Control division is executing a major production expansion at its Grand Prairie, Texas facility, supported by substantial new defense contracts and infrastructure investment. In February 2026, the facility received $77 million in combined defense awards, including a $43.5 million contract modification for PAC-3 MSE (Patriot Advanced Capability-3 Missile Segment Enhancement) production modifications, awarded by the Army Contracting Command at Huntsville, Alabama.
The expansion accelerates production of the PAC-3 MSE system, a hit-to-kill tactical air defense missile with proven combat performance across U.S. and allied forces. The platform is deployed by 16 partner nations, including Ukraine, positioning it as a critical capability amid elevated global security demand. Lockheed Martin delivered 620 Patriot missile units in 2025 and has committed to significantly higher throughput under existing agreements.
The scale of strategic commitment became evident in September 2025, when the U.S. Army awarded Lockheed Martin a $9.8 billion multi-year production contract—the largest in the Missiles and Fire Control unit's history—to increase annual PAC-3 production capacity to 1,970 units per year. This represents a 217% increase from current baseline production. Jason Reynolds, vice president and general manager of integrated air and missile defense at Lockheed Martin, stated that "PAC-3 MSE's recent combat performance solidified it as a must-have capability for America and its allies around the world," underscoring the strategic foundation for the capacity investment.
Infrastructure modernization underpins the production ramp. Lockheed Martin opened its Advanced Manufacturing Technology Center (AMT Center) in Grand Prairie in October 2024, incorporating advanced robotics, software automation, and next-generation manufacturing methodologies developed through partnerships with defense technology innovators. The facility positions Grand Prairie as a critical hub for U.S. air defense production, reflecting Pentagon prioritization of missile defense capability expansion in response to evolving threat assessments and allied procurement requirements.
The expansion accelerates production of the PAC-3 MSE system, a hit-to-kill tactical air defense missile with proven combat performance across U.S. and allied forces. The platform is deployed by 16 partner nations, including Ukraine, positioning it as a critical capability amid elevated global security demand. Lockheed Martin delivered 620 Patriot missile units in 2025 and has committed to significantly higher throughput under existing agreements.
The scale of strategic commitment became evident in September 2025, when the U.S. Army awarded Lockheed Martin a $9.8 billion multi-year production contract—the largest in the Missiles and Fire Control unit's history—to increase annual PAC-3 production capacity to 1,970 units per year. This represents a 217% increase from current baseline production. Jason Reynolds, vice president and general manager of integrated air and missile defense at Lockheed Martin, stated that "PAC-3 MSE's recent combat performance solidified it as a must-have capability for America and its allies around the world," underscoring the strategic foundation for the capacity investment.
Infrastructure modernization underpins the production ramp. Lockheed Martin opened its Advanced Manufacturing Technology Center (AMT Center) in Grand Prairie in October 2024, incorporating advanced robotics, software automation, and next-generation manufacturing methodologies developed through partnerships with defense technology innovators. The facility positions Grand Prairie as a critical hub for U.S. air defense production, reflecting Pentagon prioritization of missile defense capability expansion in response to evolving threat assessments and allied procurement requirements.
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