Leidos Holdings Inc. (NYSE: LDOS) announced it will produce 3,000 Low-Cost Containerized Munitions for the U.S. military through a framework agreement with the Department of War, supporting what the company described as the "Arsenal of Freedom" initiative.

The defense contractor will expand its workforce and facilities in Huntsville, Alabama, and McEwen, Tennessee, to manufacture the cruise missiles. Leidos funded the development using technologies from its existing AGM-190A Small Cruise Missile program, according to a company statement.

"We're answering the Department of War's call to revolutionize the procurement of critical capabilities at scale, with a focus on speed to operational capability," said Leidos Chief Executive Officer Tom Bell.

The company began work on the Low-Cost Containerized Munitions in December and reached a conceptual design with the Pentagon. Full system design, development and testing will lead to production beginning in 2027.

The new munitions are approximately twice the size of the AGM-190A and feature increased fuel capacity and mission effectiveness. The design incorporates a modular airframe and Weapon Open Systems Architecture to enable rapid integration and mission adaptability.

While initially designed for ground launch, the modular design could support maritime platform integration and air-launched variants. The munitions leverage Leidos' established supply chain and production approach.

Leidos reported annual revenues of approximately $17.2 billion for the fiscal year ended January 2, 2026. The company employs 50,000 people globally and is headquartered in Reston, Virginia.