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Interceptor · Land

PAC-3 Missile Segment Enhancement

Hit-to-kill air and missile defense interceptor with enhanced propulsion and maneuverability.

by Lockheed Martin

FieldedInterceptorLandContract awardSep 3, 2025
A PAC-3 interceptor launching from Omelek Island during a Missile Defense Agency integrated flight test

Photo: U.S. Navy photo · Public domain (PD-USGov-Military-Navy)

Milestones20162025
  1. MilestoneManufacturer reports Army PAC-3 MSE IOC, confirmed
  2. Contract award$9.8B Army production contract (1,970 interceptors), confirmed

Timeline2

  1. MilestoneConfirmed

    Manufacturer reports Army PAC-3 MSE IOC

    Lockheed Martin reported that the Army had recently declared IOC. This date is the public announcement; the underlying IOC declaration date is unspecified.

    SourcesLockheed Martin

  2. Contract awardConfirmed

    $9.8B Army production contract (1,970 interceptors)

    Award: PAC-3 MSE production (1,970 interceptors) (up to $9.80B ceiling)

    SourcesLockheed Martin

Solid entries are confirmed, outlined reported, dashed estimated or still to come; dotted italic entries are speculative. Dates show only the precision the sources give.

Built with1

Used in1

Cost to the government

  • Unit cost (per round)Reported
    $3.7M
    Estimate / observation: 2026-03-05

    Business Insider (March 2026): PAC-3 interceptors 'estimated to cost roughly $3.7 million each' (unattributed estimate; variant not specified).

    Business Insider
  • Contract unit priceEstimated
    $5.0M
    Estimate / observation: 2025-09-03 · 1,970 units

    US Army $9.8B contract (FY2024-2026 multiyear) for 1,970 PAC-3 MSE interceptors and associated hardware, for US and FMS customers. Derived: 9,800,000,000 / 1,970 = $4,974,619 per interceptor including associated hardware.

    Lockheed Martin
Earlier cost observations (2)
  • PAC-3 Missile Segment Enhancement · Unit cost (per round) · $4.1M
    Estimate / observation: 2022-12-16 · Then-year $

    CSIS (Cancian/Karako): the PAC-3 MSE costs about $4.1M apiece; FY2023 Army buy 252 missiles for $1.037B. PAC-2s cost about half.

    Center for Strategic and International Studies
  • PAC-3 Missile Segment Enhancement · Unit cost (per round) · $5.0M
    Then-year $ · 244 units

    FY 2027 request, Exhibit P-5 (MSE Missile, line 8260C53101): missile hardware unit cost $4,987.857K for 244 missiles. Earlier years in same exhibit: FY2025 $4,266.464K (194), FY2026 $4,395.473K (311).

    U.S. Army, Assistant Secretary of the Army (Financial Management and Comptroller)
Budget by fiscal year
Fiscal yearAppropriationRequestEnactedQtyBudget lineSource
FY2027Procurement$13.96B—3,203—Office of the Under Secretary of War (Comptroller)Confirmed
FY2026Procurement$1.36B$1.65B357—Office of the Under Secretary of War (Comptroller)Confirmed
FY2025Procurement—$905M214—Office of the Under Secretary of War (Comptroller)Confirmed

Unit costs and contract unit prices for this product, and budget figures for the programs that buy it. Each figure states its dollar basis and links its source; contract values are under Programs & awards.

Programs & awards1 awards

Linked awards1

All awards →

Sources8

  1. 1.
    CompanyBoeing receives seven-year PAC-3 MSE seeker subcontract from Lockheed Martin

    Oct 5, 2026 · Supports: System · system component:boeing-pac-3-mse-seeker

    “to scale production and deliver PAC-3® Missile Segment Enhancement (MSE) seekers.”
  2. 2.
    NewsMissiles flying across the Middle East: the air defense price tag grows

    Business Insider · Mar 5, 2026 · Supports: Cost · amount

    “which are estimated to cost roughly $3.7 million each.”
  3. 3.
    CompanyU.S. Army Awards Lockheed Martin $9.8B Contract to Bolster Missile Defense with PAC-3 MSE

    Lockheed Martin · Sep 3, 2025 · Supports: Cost · amount, Government award · ceiling usd, System milestone

    “The U.S. Army awarded Lockheed Martin (NYSE: LMT) a $9.8 billion contract for the production of 1,970 Patriot Advanced Capability – 3 Missile Segment Enhancement (PAC-3 MSE) interceptors and associated hardware.”
  4. 4.
    ResearchPatriot to Ukraine: What Does It Mean?

    Center for Strategic and International Studies · Dec 16, 2022 · Supports: Cost · amount

    “The PAC-3 Missile Segment Enhancement (MSE)―the only version that the United States is currently procuring―costs about $4.1 million apiece.”
  5. 5.
    CompanyU.S. Army Declares Lockheed Martin’s PAC-3 MSE Initial Operational Capability

    Lockheed Martin · Aug 16, 2016 · Supports: System, System milestone

    “The U.S. Army recently declared Initial Operational Capability (IOC)”
  6. 6.
    Government recordProgram Acquisition Cost by Weapon System: Fiscal Year 2026 Budget Request

    Office of the Under Secretary of War (Comptroller) · Supports: Cost · amount

    “PAC-3/Missile Segment Enhancement (MSE) ... - 230 2,814.9 214 905.1 233 945.9 12”
  7. 7.
    Government recordProgram Acquisition Cost by Weapon System: Fiscal Year 2027 Budget Request

    Office of the Under Secretary of War (Comptroller) · Supports: Cost · amount

    “PAC-3/Missile Segment Enhancement (MSE) ... 1,445.9 47 200 357 1,645.9 267 1,395.4 2,936”
  8. 8.
    Government recordArmy FY 2027 Budget Estimates: Missile Procurement, Army Justification Book

    U.S. Army, Assistant Secretary of the Army (Financial Management and Comptroller) · Supports: Cost · amount

    “Missile Hardware(†) 3,890.444 2,246 8,737.937 4,266.464 194 827.694 4,395.473 311 1,366.992 4,987.857 244 1,217.037”

Each fact on this page is attached to the sources that support it. Archived copies are linked when we keep one.