Defense giant Lockheed Martin (NYSE: LMT) will produce an unspecified number of Phased Array Tracking Radar to Intercept on Target (PATRIOT) Advanced Capability-3 missiles, in the company's "missile segment enhancement configuration," along with associated ground support equipment and spare parts.
The Defense Department announced this contract in the Pentagon's daily digest of contracts awarded to its defense contractors Thursday evening, stating the value of the contract as $6.068 billion and the U.S. Army as the service ordering the missiles.
Launching a PATRIOT PAC-3 missile. Image source: Lockheed Martin.
The PATRIOTs in question, commonly known as "PATRIOT PAC-3," comprise only the missile portion of the PATRIOT air defense system. Lockheed peer Raytheon produces the missile's launcher system and its radar tracker. In addition to the U.S. military, nine allied nations, including Bahrain, Germany, Japan, Korea, Poland, Qatar, Romania, Sweden, and the United Arab Emirates -- have signed agreements to procure PAC-3 MSE interceptors from Lockheed.
In a subsequent press release, Lockheed Martin advised that the missiles in question will be delivered to the Army "across FY21, FY22 and FY23 contract years." The Pentagon stated, however, that the "estimated completion date" of the contract is June 30, 2027.
Scott Arnold, vice president of Lockheed's Integrated Air & Missile Defense unit at Lockheed Martin Missiles and Fire Control, called the PAC-3 MSE "one of the most capable multi-mission interceptors," utilizing "unmatched Hit-to-Kill technology" and "enabling our customers to defend against advanced tactical ballistic missiles, cruise missiles and aircraft."
Missiles and Fire Control is Lockheed Martin's smallest major business subdivision, with annual sales of $10.6 billion, according to data from S&P Global Market Intelligence. It is also, however, Lockheed Martin's most profitable business division, generating operating profit margins of 13.5%
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