The U.S. government awarded Lockheed Martin (NYSE: LMT) a seven-year undefinitized contract action modification valued at up to $53.86 billion for PAC-3 Missile Segment Enhancement (MSE) interceptors, bringing the total multiyear contract value to $58.62 billion. The award follows a $4.7 billion contract for year one issued in April 2026.

The contract was issued under the Department of War's Acquisition Transformation Strategy. Lockheed Martin said the funding is intended to triple PAC-3 MSE production capacity by the end of 2030.

The company said employment at its Camden, Arkansas facility, which handles final assembly of PAC-3 MSE interceptors, is expected to grow approximately 50%, from 1,200 to roughly 1,850 jobs.

"Today's announcement turns concept into reality, providing industry with the long-term demand signals it needs to build a resilient supply chain, scale production, and deliver critical capabilities to our Warfighters at the speed of relevance," said Michael P. Duffey, Under Secretary of War for Acquisition and Sustainment.

Jim Taiclet, Chairman, President and CEO of Lockheed Martin, said the company is investing in hiring and facility upgrades to meet the government's acquisition objectives.

According to the press release, this is the second major multiyear contract Lockheed Martin has received under the Department of War's new acquisition model, following a $35 billion contract for Terminal High Altitude Air Defense (THAAD) interceptor production.

Lockheed Martin said it plans to invest $8 billion to $9 billion through 2030 to modernize more than 20 U.S. facilities. The company has held groundbreakings this year at facilities in Troy, Alabama and Camden, Arkansas.