Lockheed Martin to integrate PAC-3 MSE onto Navy warships with tests in 2028 and fielding by 2029

Lockheed Martin received a Phase II contract in late September to adapt its PAC‑3 Missile Segment Enhancement (MSE) interceptor for the U.S. Navy. The company has self‑funded $120 million for hardware and software changes and plans shipboard tests in 2028, with full integration onto Mk 41 VLS‑equipped warships targeted for 2029. The Navy variant will be produced alongside the Army version at the Camden, Arkansas facility. The Army also awarded Lockheed a $58 billion acceleration contract to triple production capacity.

The Navy integration adds a proven land‑based missile to the fleet’s Aegis‑based air‑and‑missile defense, expanding capability against ballistic, cruise and hypersonic threats. Lockheed Martin’s $120 million internal investment and the $93 million Phase II contract provide near‑term revenue and position the company for larger production volumes under the $58 billion Army acceleration contract.

  • 1Lockheed Martin received a Phase II contract in late September to continue development and integration of PAC‑3 MSE for the Navy.
  • 2The Phase II contract follows an earlier $93 million contract that made PAC‑3 MSE a Navy program of record.
  • 3Lockheed Martin self‑funded $120 million for hardware and software adjustments to enable naval integration.
  • 4Shipboard flight tests are planned for 2028, with fielding on warships targeted for 2029.
  • 5The Navy variant will be produced at Lockheed Martin’s All‑Up Round III facility in Camden, Arkansas.
  • 6The U.S. Army awarded Lockheed Martin a $58 billion contract on July 29 to accelerate PAC‑3 MSE production.

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