The US Department of War signed framework agreements with Lockheed Martin and Northrop Grumman to triple annual output of Patriot PAC-3 interceptors and quadruple production of THAAD missile defense components. More than $3 billion has been committed to Northrop Grumman alone for solid rocket motors and safety devices, establishing the company as a second source for PAC-3 components. The combined value of 2026 agreements reaches approximately $93.6 billion between the Patriot and THAAD programs. The initiative falls under the Department’s broader Acquisition Transformation Strategy, dubbed the « Arsenal of Freedom » initiative. For investors, Lockheed Martin and Northrop Grumman stand as the most obvious beneficiaries of this enhanced revenue visibility for years to come.
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