Lockheed Martin Wins $694 Million Air Force Hypersonic ARRW Contract

Lockheed Martin (LMT ) announced on October 27, 2026, that it has been awarded a $694 million contract from the U.S. Air Force for production of the Air-Launched Rapid Response Weapon (ARRW), and that it broke ground earlier that day on an expansion of its missile production facility in Troy, Alabama, where the weapon will be built.

The Department of the Air Force said it awarded Lockheed Martin the $694 million contract, covering production and fielding of the AGM-183A ARRW, on September 29, 2026, and published its announcement of the award on October 26, 2026. The Air Force said the contract was executed under the Department of War’s Enterprise-Wide Agile Acquisition Contract to modernize America’s Arsenal of Freedom.

The award marks the formal transition of the boost-glide hypersonic missile program from prototyping and flight testing into production, the Air Force said, adding that it solidifies the service’s commitment to fielding standoff, high-speed strike options. The department said further details on quantities and delivery dates will not be released to protect operational security.

From Flight Testing to Production

“This is a turning point in our advanced weapons roadmap,” Secretary of the Air Force Troy Meink said in the announcement. “By moving ARRW from test to production, we’re providing our combatant commanders with a credible, high-speed strike weapon capable of penetrating the most advanced anti-access and area-denial systems.”

Chief of Staff of the Air Force Gen. Ken Wilsbach said fielding ARRW enhances the service’s ability to hold targets at risk anywhere around the world and provides the Joint Force with a flexible and rapid response option for highly contested environments.

According to the Air Force, ARRW is designed to accelerate to speeds exceeding Mach 5 using a solid-fuel rocket booster before releasing a hypersonic glide vehicle, and will enable Air Force assets to strike time-sensitive, heavily defended and high-value targets from standoff ranges. The department said it is developing hypersonic science and technology so the United States can rapidly transition operational hypersonic systems, and noted that B-52 Stratofortress crews from the 23rd Expeditionary Bomb Squadron and the 49th Test and Evaluation Squadron took part in hypersonic weapon familiarization training at Andersen Air Force Base, Guam, in February 2024.

Lockheed Martin said ARRW is integrated on the B-52 and brings a hypersonic strike capability that can be rapidly deployed, calling the missile’s production readiness an essential asset for the military and a critical capability to counter emerging threats. The company said the weapon will travel at speeds greater than Mach 5, more than five times the speed of sound, to rapidly engage targets from significant standoff ranges. It said ARRW is designed to operate in extreme environments through advanced materials that manage extreme heat, an advanced technology package that maintains accuracy and lethality, and capability to overcome a wide range of defenses.

“The ARRW production contract award showcases Lockheed Martin’s ability to develop and begin production on cutting-edge systems at unprecedented speed and scale,” said Tim Cahill, president of Lockheed Martin Missiles and Fire Control. Cahill said ARRW expands the company’s weapon systems portfolio and will enhance the U.S. Air Force’s strategic advantage across multiple domains.

Troy Facility Expansion

The company said the Building P-20 expansion in Troy will add 47,000 square feet of production space for ARRW, tripling the current facility’s production space and generating new American jobs over the next four years. Lockheed Martin said the jobs will add to its almost 4,000 employees in Alabama, and that the facility will prepare the workforce to build ARRW using advanced manufacturing, robotics and digital technologies.

Lockheed Martin said its planned $8 billion to $9 billion investment through 2030 to meet munitions demand includes a $67 million investment in ARRW production facility expansion and equipment made prior to receiving government funding. The company said it has already funded the efforts, materials and equipment required to start ARRW production, and that it continued research and development to support the Air Force’s need for an air-launched hypersonic strike capability.

Lockheed Martin characterized the production award as the culmination of years of developmental and test partnership with the U.S. Air Force. The company described itself as the leader in hypersonic strike capabilities, citing more than 60 years of hypersonic strike experience in support of the U.S. National Defense Strategy and the security objectives of allied nations.