L3Harris Wins $4.7 Billion PAC-3 MSE Propulsion Contract

L3Harris Technologies (LHX ) has received an undefinitized contract award from Lockheed Martin (LMT ) valued at $4.7 billion over seven years to produce propulsion systems for the PAC-3 Missile Segment Enhancement (MSE) interceptor, the Melbourne, Florida-based company announced on September 8, 2026.

L3Harris said the multi-year contract is its largest PAC-3 propulsion award to date, and that it aligns with the long-term framework agreement the company established with the Department of War. The award supports large-scale production of the MSE interceptor’s advanced two-pulse solid rocket motor, the Lethality Enhancer and Attitude Control Motors.

“Receiving this contract at unparalleled speed allows us to continue expanding PAC-3 propulsion production capacity to enable a wartime footing,” said Ken Bedingfield, president of Missile Solutions at L3Harris. “Supporting America’s Arsenal of Freedom and ensuring warfighters have the munitions needed to deter and defeat evolving threats will continue to be our priority.”

The award follows a seven-year framework agreement L3Harris signed on July 27, 2026, with the Department of War and Lockheed Martin, which used the government’s multi-year procurement authorities to enable a long-term PAC-3 MSE contract. L3Harris said at the time that the framework would allow it to nearly triple production across a range of propulsion products supporting the PAC-3 MSE interceptor, and that a resulting contract was expected to be definitized later in 2026.

The Department of War characterized the July framework as one of two landmark agreements announced the same day covering propulsion for the PAC-3 MSE interceptor and the Terminal High Altitude Area Defense (THAAD) weapon system. “Rebuilding the Arsenal of Freedom requires moving with speed and precision to scale the production of critical munitions,” said Michael P. Duffey, Under Secretary of War for Acquisition and Sustainment, in the department’s release. The department said the PAC-3 components L3Harris produces, the two-pulse solid rocket motor, Attitude Control Motors and the Lethality Enhancer, provide the speed, extended range and precise maneuverability the PAC-3 MSE needs to defeat advanced tactical ballistic missiles, cruise missiles and enemy aircraft. It said the L3Harris agreements followed earlier PAC-3 MSE framework agreements with prime contractor Lockheed Martin, seeker manufacturer Boeing and multi-component supplier Honeywell, and were a direct outcome of its Acquisition Transformation Strategy.

The Lethality Enhancer is an explosive device that increases the ground-based PAC-3’s kill radius against threats including cruise missiles, according to L3Harris’ July announcement.

Camden Production Expansion

L3Harris broke ground on two new facilities supporting PAC-3 MSE production in June 2026 at its Camden, Arkansas, site. The company said the buildings will enable substantial increases in onsite production, improve throughput and further modernize solid rocket motor manufacturing capabilities, and both are expected to be operational in 2027.

The two facilities sit on the company’s Arkansas Advanced Propulsion Facilities campus in Camden and comprise an approximately 75,000-square-foot cast, cure and final assembly facility and an approximately 70,000-square-foot case preparation facility, according to the company’s June 24, 2026 announcement. Planned manufacturing capabilities include automated X-ray inspection systems that use artificial intelligence for rapid defect detection, fully automated casting and expanded curing capacity. Chairman and CEO Christopher Kubasik said L3Harris is self-funding the new Arkansas facilities. L3Harris and Arkansas state leaders broke ground on the broader campus in 2025, and the company said the site will specialize in the production of medium and large solid rocket motors supporting tactical and air defense missiles, missile defense targets, interceptors, hypersonic vehicles and emerging missile defense needs.

The new buildings add to earlier Camden investments supporting PAC-3 production, including dedicated processing bays and automated digital X-ray equipment that the company said have lowered inspection and cycle times. Across its wider propulsion manufacturing footprint, L3Harris said it is investing billions of dollars, constructing approximately 60 new facilities and adding more than 1 million square feet of manufacturing space across Alabama, Virginia and Arkansas.

PAC-3 Propulsion Background

L3Harris first began providing solid propulsion for the Extended Range Interceptor, which later became known as PAC-3, in the 1990s, according to the company’s program documentation. It has produced the solid rocket motor for the PAC-3 Cost Reduction Initiative (CRI) variant since 2000, and the small, short-duration solid propellant Attitude Control Motors for PAC-3 missile variants at Camden since 2004. Each PAC-3 CRI interceptor contains 180 Attitude Control Motors, which fire explosively to refine the missile’s course and ensure body-to-body impact.

The PAC-3 MSE introduced a larger dual-pulse solid rocket motor and larger tail fins over earlier PAC-3 variants, giving the interceptor greater speed and maneuverability. PAC-3 missiles are typically deployed in a Patriot M903 launcher that accommodates 16 PAC-3 or 12 PAC-3 MSE missiles, and the MSE is the primary interceptor for Germany’s next-generation air and missile defense system, Taktisches Luftverteidigungssystem. The Patriot system itself, a land-based, mobile guided missile system fielded by the U.S. Army, has been upgraded continually since it was first deployed in 1982.

In its announcement, L3Harris identified order values, production increases and capacity expansion as forward-looking, noting risks that include continued funding up to the full contract value.