Lockheed Martin (NYSE: LMT) announced the PAC-3 Adapted Capability Effector (PAC-3 ACE) at the Farnborough Airshow on July 20, 2026, describing it as a missile interceptor priced at less than half the per-unit cost of its PAC-3 MSE interceptor.

The new interceptor is built on the existing PAC-3 fire-control system and is designed to integrate with the Patriot weapon system and the Integrated Battle Command System (IBCS). According to the company, using existing software and integration frameworks is intended to shorten development and production timelines.

Lockheed Martin said PAC-3 ACE is designed to counter airbreathing threats, cruise missiles, and close-range to short-range ballistic missiles. The company said it plans to develop and produce the interceptor jointly with American and European industry partners.

Tim Cahill, president of Lockheed Martin Missiles and Fire Control, said in the press release: "American and allied warfighters need a solution that is battle-tested and budget-smart, and PAC-3 ACE delivers exactly that by building on the unrivaled performance of the PAC-3 MSE."

The company did not disclose a specific per-unit price or a projected timeline for initial production.