Karman Space & Defense (NYSE: KRMN) has signed a seven-year, $218 million agreement with Lockheed Martin to manufacture shrouds for the Terminal High Altitude Area Defense (THAAD) missile defense program, according to a company statement.

The agreement, signed Sept. 29, 2026, calls for Karman to produce aerodynamic shrouds that protect interceptor components during launch and flight. Lockheed Martin serves as the prime contractor and systems integrator for the THAAD weapon system.

"Demand for missile defense capabilities is accelerating, and meeting that demand will require significantly more capacity across the industrial base," said Jon Rambeau, chief executive officer of Karman. "This long-term agreement deepens our partnership with Lockheed Martin and enables us to support increased THAAD production for years to come."

The deal was one of three long-term agreements Karman disclosed as being under negotiation during its Aug. 6, 2026, second-quarter earnings call. Karman is headquartered in Huntington Beach, Calif.