US Defense Department to Spend Nearly $170 Billion on Missiles and Nuclear Submarines; Lockheed Martin Wins
The US Defense Department announced nearly $170 billion in spending to accelerate production of Patriot and THAAD missiles and nuclear submarines, addressing inventory depletion from the US-Iran war and the Russia-Ukraine conflict. Lockheed Martin secured a seven-year, $59 billion contract for Patriot missiles, expanding from a one-year $4.7 billion order in April 2026. The Pentagon also finalized an initial seven-year, $35 billion contract for THAAD interceptors, with the contracts including infrastructure upgrades for two shipyards. The multi-year agreements reflect a procurement reform launched in 2025.
The US Department of Defense announced it will invest nearly $170 billion in defense contractors to accelerate production of Patriot air defense missiles, THAAD interceptor missiles, and nuclear submarines, in response to the continuous depletion of weapons stockpiles caused by the US-Iran war and the Russia-Ukraine conflict.
The US Army's Patriot missile contract with manufacturer Lockheed Martin has been expanded to nearly $59 billion over a seven-year period, a significant increase from the one-year, $4.7 billion order announced in April 2026. Additionally, the Pentagon has preliminarily finalized a seven-year, $35 billion contract for THAAD interceptor missiles, which also have ballistic missile interception capabilities.
The contract also covers infrastructure upgrade projects for two shipyards.
These contracts, all spanning seven years, reflect a change in the Pentagon's approach to missile procurement. The military is pushing for more multi-year procurement agreements to replace the previous year-by-year model, thereby encouraging defense contractors to invest in building new factories and arrange supply chains in advance. This reform was launched by the US Department of Defense in 2025.
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The event has a measured impact on 1 industry. The strongest current signal is positive for Defence Equipment, with intensity 82/100 and 90% confidence over a medium term horizon.
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