$694 Million to Move Lockheed’s Hypersonic ARRW Missile Into Production
Key Facts
The U.S. Air Force awarded Lockheed Martin a $694 million contract to produce the air-launched ARRW missile, according to a company announcement on October 27, 2026. The contract was awarded in September, before being announced in October. The funding moves the program from testing to production, adding a hypersonic weapon to the U.S. Air Force’s arsenal. The number of missiles covered by the contract and delivery dates were not disclosed. The company said ARRW is designed to fly at speeds above Mach 5.
The missile was designed to strike targets from long distances and can be integrated onto a B-52 bomber, according to Lockheed Martin. The company says its speed exceeds five times the speed of sound, allowing it to reach distant targets quickly. It said it had pre-funded the efforts, materials and equipment needed to begin production before receiving government funding. The company expects the expansion to enable it to provide workers to build the missile over the next four years. It also said the program will add U.S. jobs during that period.
Separately, Lockheed Martin announced the establishment of a dedicated facility in Poland to maintain PAC-3 missiles, in coordination with the U.S. government. The facility will repair and refurbish the missiles, support their life cycle and recertify them, supporting NATO allies that operate them. Polish Prime Minister Donald Tusk said his country had strongly pursued hosting these capabilities and infrastructure, competing with other ambitious countries. Poland’s Defense Ministry had said sending the missiles to the United States for refurbishment and certification took two years. The ministry added that establishing the service center in Poland would shorten the certification process.
The facility’s supply chain includes Germany, the Netherlands and Sweden, in addition to the United States and Poland, according to Lockheed Martin. The maintenance center is being established as European allies discuss with the United States the possibility of enabling local production of PAC-3 MSE missiles to address supply shortages. The company said the U.S. government awarded it $58.62 billion during 2026 to continue accelerating production of the missiles. The announced role of the Polish facility remains limited to maintenance, support and recertification. Talks about local production concern a separate option from the maintenance center’s work.
The new contracts come as Lockheed Martin reported sales of $20.7 billion in the third quarter of 2026, an annual increase of 11%. Net earnings rose 14% to $1.8 billion, or $7.97 per share, according to the company’s results. Backlog reached a record $292 billion at the end of the quarter. The company raised its 2026 sales forecast to a range of about $80 billion to $82 billion. It also forecast diluted earnings per share of about $30.35 to $30.75.