Lockheed Martin wins $35.35 billion THAAD production contract

Lockheed Martin said it received a $35.35 billion U.S. contract to expand production of its THAAD missile-defense system, a major procurement award tied to the Pentagon’s effort to rebuild weapons stockpiles after the Iran war.

The Wall Street Journal first reported the award on June 24, 2026. In a follow-up report, WSJ said the deal could support production of hundreds of THAAD interceptors over seven years and described the contract as undefinitized, meaning final funding and terms still need additional government approval.

A major procurement push

The award fits into a broader Pentagon drive to replenish missile inventories after high-tempo combat operations in the Middle East. According to the research packet, the Pentagon’s stockpile-rebuilding effort is part of the response to wartime depletion, and the THAAD award is one of the first large procurement moves tied to that push.

AP separately reported that the White House has sought supplemental Pentagon replenishment funding from Congress tied to the Iran war. That broader budget effort provides context for why missile-defense production is now moving to the front of the Pentagon’s procurement agenda.

What THAAD does

THAAD, or Terminal High Altitude Area Defense, is a missile-defense system designed to intercept ballistic missiles in their terminal phase. It has been used in recent missile-defense operations in the Middle East, underscoring why U.S. officials and allies consider it strategically important.

Wired reported earlier this year on THAAD’s operational role in the region, highlighting the system’s relevance after repeated missile threats. The reported contract suggests the U.S. is now trying to ensure it can replace and expand those defensive inventories at scale.

Lockheed’s production buildout

WSJ reported that Lockheed has already been expanding its manufacturing base ahead of higher demand. The company recently began construction on a munitions production center in Alabama.

The company also plans to invest more than $9 billion through 2030 to expand and upgrade weapons facilities nationwide, according to the reporting reviewed for this story. The THAAD award appears to align with that broader industrial expansion.

What remains unresolved

The contract is not yet fully settled. Because it is undefinitized, additional government approval is still needed before the final terms are locked in.

That leaves several open questions, including how many THAAD interceptors will ultimately be covered, how much of the $35.35 billion is already funded, and what the delivery schedule will look like.

No formal Pentagon announcement was cited in the reporting reviewed for this story, so the next confirmation may come from a contract posting, a Lockheed filing or statement, or additional budget action from Congress.

For Lockheed, the deal would be a major boost to its missile-defense business and to the company’s expanded production base. For the Pentagon, it is a sign that the stockpile-rebuilding effort is moving from planning into large-scale contracting.