The agreement is intended to triple production of the seekers, which are critical components in PAC-3 interceptors used by the United States and its allies. These systems are designed to identify, track and defeat advanced threats, including hostile aircraft, hypersonic weapons, and ballistic and cruise missiles.
Boeing has invested more than $200 million since 2024 to expand its production capacity in Huntsville, Alabama. This includes the construction of a 35,000-square-foot facility as part of a wider effort to scale manufacturing capabilities.
The framework also enables further cash-neutral investments across Boeing’s production value stream. It is aligned with the Department of War’s Acquisition Transformation Strategy, which seeks to accelerate delivery of complex systems and reinforce domestic industrial capacity.
Steve Parker, president and chief executive of Boeing Defense, Space & Security, said the effort reflects increased investment in both infrastructure and workforce. “Across the nation and around the world, we’re making significant investments in people and facilities to meet the evolving security needs of the United States and its allies,” Parker said.
He added that the agreement supports faster production and delivery of advanced systems. “The administration’s Acquisition Transformation Strategy empowers industry to invest and accelerate the delivery of complex systems at scale and strengthen the Department’s Arsenal of Freedom. With this framework, we’ll be able to produce and deliver more advanced seekers and enhance our military’s advantage.”
Under the agreement, Boeing, the Department of War and Lockheed Martin, the prime contractor for the PAC-3 Missile Segment Enhancement program, will begin ramping up production immediately. The parties are expected to negotiate a multi-year contract later this year.
Bob Ciesla, vice president of Boeing Precision Engagement Systems, said the company is preparing to scale operations significantly. “This agreement paves the way for us to scale rapidly to deliver increasingly sophisticated seekers,” Ciesla said.
“In 2025, we increased deliveries by over 30% and we’re excited for the opportunity to grow our highly skilled workforce and our presence in Huntsville as we now triple production.”
