Lockheed Martin intends to raise its annual production of Terminal High Altitude Area Defense (THAAD) interceptors from 96 to 400 units. This expansion follows a seven-year undefinitized contract action awarded by the Missile Defense Agency in June 2026.
The agreement carries a ceiling value of up to $35 billion and builds on a framework agreement signed in January that set the goal for the increased output.
The company’s CEO, Jim Taiclet, discussed the production target during the second-quarter 2026 earnings call. He noted that the firm is simultaneously expanding production of PAC-3 MSE and Precision Strike Missiles. The move aligns with U.S. efforts to rebuild interceptor inventories and strengthen the domestic industrial base responsible for manufacturing these systems.
To support the fourfold increase in capacity, Lockheed Martin is committing more than $9 billion in investments through 2030. These funds will cover new production facilities and manufacturing upgrades across the United States. A specific new facility in Troy, Alabama, will span 87,000 square feet.
The long-term demand signal from the contract allows the company to invest in equipment, suppliers, and skilled workers with greater confidence.
