Boeing (NYSE:BA) has signed a seven-year framework agreement with the U.S. Department of Defense aimed at tripling production of PAC-3 missile seekers, critical components that allow interceptor missiles to detect and track incoming threats.
The agreement forms part of the Pentagon’s Arsenal of Freedom initiative, which seeks to reinforce the U.S. defense industrial base. PAC-3 seekers are integrated into interceptors designed to counter a range of threats, including aircraft, hypersonic weapons, and both ballistic and cruise missiles.
To support the expansion, Boeing has already invested more than $200 million since 2024 to boost production capacity at its facility in Huntsville, Alabama, including the addition of a 35,000-square-foot manufacturing expansion. The framework deal also leaves room for further investment by the company across different stages of the production process.
“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,” said Steve Parker, president and CEO of Boeing Defense, Space & Security.
Under the agreement, Boeing plans to grow its workforce and add specialized manufacturing roles. The company also noted that it relies on a domestic supply chain for the production of these systems.
Boeing will work alongside the U.S. Department of Defense and Lockheed Martin, which acts as the prime contractor for the PAC-3 Missile Segment Enhancement system. The partners will begin ramping up production immediately while preparing for a longer-term multi-year contract expected later this year.
Bob Ciesla, vice president of Boeing Precision Engagement Systems, said the company increased deliveries by more than 30% in 2025. The new agreement positions Boeing to significantly scale output of PAC-3 seekers while continuing to expand its operations in Huntsville.