The U.S. government awarded Lockheed Martin (NYSE: LMT) a seven-year undefinitized contract action valued at up to $35 billion to quadruple production of Terminal High Altitude Area Defense (THAAD) interceptors, according to a company press release dated June 24, 2026.

The contract follows a framework agreement signed in January between Lockheed Martin and the Department of War and is described as one of the first major multiyear procurement contracts executed under the department's Acquisition Transformation Strategy.

The award comes weeks after Lockheed Martin broke ground on a new Munitions Production Center in Troy, Alabama, as part of the company's stated investment of more than $9 billion through 2030. The company also recently opened a Next Generation Interceptor facility in Courtland, Alabama, and a Munitions Acceleration Center in Camden, Arkansas. Lockheed Martin said the investments span more than 20 new or modernized facilities across the United States.

Tim Cahill, president of Lockheed Martin Missiles and Fire Control, said the award "reflects our shared vision with the Department of War to strengthen America's Arsenal of Freedom through a transformational shift to multiyear procurement."

In April, the U.S. government separately awarded Lockheed Martin a $4.7 billion contract for accelerated production of PAC-3 MSE interceptors.

THAAD is described by the company as the only U.S. system designed to intercept threats both inside and outside the atmosphere.