Interceptor · Land
PAC-3 Missile Segment Enhancement
Hit-to-kill air and missile defense interceptor with enhanced propulsion and maneuverability.
FieldedInterceptorLandContract awardSep 3, 2025
- Milestones2
- Operators—
- Components2
- Programs—
- Capabilities—
- Inputs—
Milestones20162025
Timeline2
- 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.
- Contract awardConfirmed
$9.8B Army production contract (1,970 interceptors)
The latest 10 milestones. 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.
Cost to the Government
Missiles · Lockheed Martin
PAC-3 Missile Segment Enhancement
Interceptor procurement is separate from Patriot batteries, radars and command equipment.
Gross procurement / interceptor
$4.6M
FY2026 base plus OOC request · Nominal USD; source budget basis
P-40 BLI8260C53101 includes support and procurement timing effects. Not a bare interceptor production quote or the cost of a Patriot battery.
U.S. Army ↗U.S. inventory
Not verified
A current U.S. inventory was not established. Annual procurement, cumulative deliveries and production capacity are not a stockpile count.
Base plus OOC requested interceptors
233
FY2026 · U.S. only; stated source scope
P-40 quantity: 130 base plus 103 OOC. Separately described reconciliation purchases are outside this denominator.
U.S. Army ↗R&D program total
Not verified
A lifetime program R&D total was not established. Development contracts and shared program budgets are not substituted for that total.
Cost & funding breakdown
Gross procurement request
$1.072B
FY2026 base plus OOC · Nominal USD; source budget basis
P-40 gross amount; prior-year advance funding changes the net appropriation request.
U.S. Army ↗Missiles and the Patriot system are separate purchases
PAC-3 MSE is the interceptor. Patriot radar, engagement-control equipment, launchers and support are separate acquisition components. The June 2025 budget estimate predates the September 2025 production award.
Operations & sustainment
Annual operations & support
Not verified
A complete, system-specific annual operating and support cost was not established. Procurement, replacement rounds and contract support are different measures.
Cost over time · 3 observations
Each row retains its original scope and dollar basis. Changing quantities, service life and inflation can change the estimate without changing the price of building one unit.
| Observation | Measure | Amount | Dollar basis | Evidence |
|---|---|---|---|---|
| FY2024 · PB2026 | Gross procurement / interceptor P-40 BLI8260C53101 includes support and procurement timing effects. Not a bare interceptor production quote or the cost of a Patriot battery. | $11.143M | Nominal USD; source budget basis | U.S. Army ↗ |
| FY2025 · PB2026 | Gross procurement / interceptor P-40 BLI8260C53101 includes support and procurement timing effects. Not a bare interceptor production quote or the cost of a Patriot battery. | $4.818M | Nominal USD; source budget basis | U.S. Army ↗ |
| FY2026 base plus OOC request | Gross procurement / interceptor P-40 BLI8260C53101 includes support and procurement timing effects. Not a bare interceptor production quote or the cost of a Patriot battery. | $4.6M | Nominal USD; source budget basis | U.S. Army ↗ |
Contracts & purchasing · 1 records
Award values, ceilings and purchase agreements have different meanings. These records are not added together as total spending.
2025-09-03 · Production award
U.S. Army and international customers → Lockheed Martin
$9.8B · 1970 units in scope
PAC-3 MSE interceptors and associated hardware. U.S./foreign allocations and support prevent treating the award divided by 1,970 as a bare missile quote.
Lockheed Martin ↗
International buyers
No international purchase documented in this review.
Coverage & open research
- Current U.S. inventory and complete annual operating-and-support costs require additional public evidence.
- Buyer records are selected examples, not a complete global order book.
- Additional primary-source international purchase and delivery records remain to be reviewed.
- Unit cost (per round)Reported$3.7MEstimate / observation: 2026-03-05
Business Insider (March 2026): PAC-3 interceptors 'estimated to cost roughly $3.7 million each' (unattributed estimate; variant not specified).
Source - Contract unit priceEstimated$5.0MEstimate / 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.
Source
Earlier cost observations (2)
- PAC-3 Missile Segment Enhancement · Unit cost (per round) · $4.1MEstimate / 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.
Source - PAC-3 Missile Segment Enhancement · Unit cost (per round) · $5.0MThen-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).
Source
| Fiscal year | Appropriation | Request | Enacted | Qty | Budget line | Source |
|---|---|---|---|---|---|---|
| FY2027 | Procurement | $13.96B | — | 3,203 | — | SourceConfirmed |
| FY2026 | Procurement | $1.36B | $1.65B | 357 | — | SourceConfirmed |
| FY2025 | Procurement | — | $905M | 214 | — | SourceConfirmed |
Unit costs and contract unit prices for this system, 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.
