Pentagon awards Lockheed Martin up to $35B to quadruple THAAD missile-interceptor output
The US has awarded Lockheed Martin $LMT a seven-year contract worth up to $35 billion to quadruple production of THAAD missile interceptors, the system used to stop ballistic strikes on US troops and allies. Lockheed says annual output should rise from about 96 interceptors to 400 by 2032, backed by more than $9 billion in new US facilities. The company notes the figure is a ceiling that depends on congressional funding.
On June 24, 2026 the Pentagon awarded Lockheed Martin $LMT a seven-year contract worth up to $35 billion to quadruple production of Terminal High Altitude Area Defense (THAAD) interceptors, the only US system able to engage targets both inside and outside the atmosphere. Lockheed says annual output should climb from about 96 interceptors to 400 through 2032, supported by more than $9 billion in company investment and over 20 new or modernized US facilities, including a new munitions plant in Troy, Alabama. The company links surging demand to Operation Epic Fury, the US-Israeli air campaign against Iran that began in late February, which strained interceptor stocks. Analysts note interceptors take years to build, so stockpiles can be spent far faster than they are replaced. Lockheed says the $35 billion figure is a ceiling that could shrink if Congress does not fully fund it, and that comparable multiyear deals already cover its Patriot and Precision Strike missiles. Source: Lockheed Martin, AeroTime, Military Times.