Leidos (NYSE: LDOS) received a $2.7 billion contract from the U.S. Army to advance hypersonic weapons from prototyping to production. The contract combines the Thermal Protection Shield and Common Hypersonic Glide Body programs into a unified effort.

The consolidated contract aims to streamline development and accelerate delivery timelines for hypersonic capabilities. Leidos will integrate guidance systems, sensor technologies, and precision munitions as part of the production transition.

"This contract is a major step forward in delivering hypersonic capabilities to the warfighter at speed," said Leidos Defense President Cindy Gruensfelder. "Our team is committed to supporting the Army and Navy in producing this critical operational capability."

Leidos has served as prime contractor on the Thermal Protection Shield program since 2021 and the Common Hypersonic Glide Body program since 2019. The combined contract transitions both programs into a production-ready phase to support Department of Defense initiatives.

The contract supports the Army's acquisition reform initiatives by unifying previously separate programs. Leidos stated the integration will help reduce production timelines and support component supply chain requirements for operational demands.

The company indicated the contract aligns with its NorthStar 2030 strategy focused on defense and national security technologies. The contract covers hypersonic and precision strike technologies for current and future military applications.