Lockheed Martin to 'dramatically' ramp up missile production under new deal with feds

The agreement also includes an option to negotiate a multi-year contract for up to seven years, if Congress votes to approve that measure.

Mar. 27, 2026 at 2:05am

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Defense contractor Lockheed Martin Corp. will quadruple its production of precision strike missiles to support a new agreement with the U.S. Department of Defense amid the continuing war with Iran. The agreement builds on a $4.94 billion contract the government awarded the company in 2025 to increase missile production.

Why it matters

Lockheed Martin is a major defense contractor with a significant presence in the Dallas-Fort Worth area, including a facility in Grand Prairie that works on missile defense systems and precision-strike weapons. This new agreement signals the federal government's continued reliance on Lockheed Martin's missile production capabilities during an ongoing conflict.

The details

Under the new framework agreement, Lockheed Martin will dramatically increase its production of precision strike missiles to meet growing demand from the Department of Defense, which has been rebranded as the Department of War. The agreement builds on a $4.94 billion contract the company received in 2025 to ramp up missile production.

  • The new framework agreement was announced on March 25, 2026.
  • Lockheed Martin received a $4.94 billion contract in 2025 to increase missile production.

The players

Lockheed Martin Corp.

A major defense contractor with a significant presence in the Dallas-Fort Worth area, including a facility in Grand Prairie that works on missile defense systems and precision-strike weapons.

U.S. Department of Defense

The federal agency that has contracted with Lockheed Martin to dramatically increase its production of precision strike missiles, which has been rebranded as the Department of War.

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What’s next

The agreement includes an option to negotiate a multi-year contract for up to seven years, if Congress votes to approve that measure.

The takeaway

This new agreement signals the federal government's continued reliance on Lockheed Martin's missile production capabilities during an ongoing conflict, underscoring the company's importance as a major defense contractor in the Dallas-Fort Worth region.