Lockheed Martin to Quadruple THAAD Missile Output

The defense contractor currently produces roughly 96 THAAD interceptors per year. Under the new agreement, annual output is expected to rise to around 400 interceptors, marking one of the largest production expansions for the system to date.

THAAD is designed to intercept ballistic missiles both inside and outside the Earth’s atmosphere and is considered a critical layer of U.S. missile defense.

New Facility Planned in Arkansas

To support the higher production rate, Lockheed Martin said it will begin construction of a new manufacturing facility in Camden, Arkansas. The company did not disclose the investment size but said the site will play a key role in meeting future demand.

Pentagon Pushes Faster Weapons Production

The THAAD expansion builds on a separate agreement reached earlier this month to dramatically increase production of Patriot missile interceptors to roughly 2,000 units per year. Pentagon officials have been pressing defense contractors to raise missile output as Washington prepares for the possibility of prolonged, high-intensity conflicts, including a potential confrontation with China.

U.S. defense leaders have also overhauled weapons procurement rules to accelerate purchases and widen the pool of suppliers, a shift Lockheed Martin says positions it well for future contracts.

Rising Demand Lifts Financial Results

Lockheed Martin reported that strong weapons demand boosted its fourth-quarter financial performance. The company posted a quarterly profit of $1.34 billion, up sharply from $527 million a year earlier.

Revenue rose 9.1% to $20.32 billion, exceeding market expectations, while earnings came in at $5.80 per share, narrowly below analyst forecasts.

Record Backlog

Chief Executive Jim Taiclet said the company experienced unprecedented demand over the past year, ending with a record order backlog of $194 billion.

He said the surge was driven by combat-proven performance of Lockheed Martin’s systems, adding that demand continued to accelerate into 2026.

Shares Jump

Following the announcement, Lockheed Martin shares rose about 5% in premarket trading. The stock has gained roughly 30% over the past 12 months.