Leidos Plans to Produce 3,000 Low-Cost Munitions Under U.S. Program for More Than 10,000 Missiles

Key Facts

Leidos’ plans to expand production of its low-cost munitions fall under a U.S. program targeting the purchase of more than 10,000 cruise missiles over three years starting in 2027. On May 13, 2026, the U.S. War Department announced framework agreements with Anduril, CoAspire, Leidos and Zone 5 to launch the Low-Cost Containerized Munitions program, known as LCCM. The department said the agreements allow missiles to be purchased through participating portfolios, with material costs fixed for units in production batches from 2027 to 2029. It said the program aims to secure more than 10,000 missiles "in just three years, starting in 2027." The framework places the company’s plans within a broader effort to increase U.S. purchases of low-cost munitions, while the volume Leidos will produce remains tied to its announced initial allotment.

Leidos said its agreed initial batch of LCCM munitions totals 3,000 units, and that it is funding their development using technologies from the AGM-190A program. This distinguishes the initial quantity allocated to the company from the program’s overall target, which covers four companies. The public announcement did not include verifiable details about supplier mobilization or whether any recent step covered both LCCM and AGM-190A models. The AGM-190A program provides a technical foundation for developing the new munition, but Leidos describes LCCM as a larger design intended for a larger payload and greater range. The company said LCCM is about twice the size of AGM-190A, with additional fuel capacity to maximize range. It also described the design as modular, which could support future integration on naval platforms or the development of air-launched variants.

Leidos plans to expand its workforce and facilities in Huntsville, Alabama, and McEwen, Tennessee, to produce LCCM. The company said production is scheduled to begin in 2027, after the system’s design, development and testing are fully completed. This timeline means industrial expansion precedes the planned start of production, while the U.S. program targets batches with fixed material costs from 2027 to 2029. For the four companies, the War Department said purchases of test missiles will begin in June 2026 ahead of the evaluation phase. This process allows the department to evaluate the missiles before beginning broader program purchases. Test results and progress in preparing Leidos’ facilities remain milestones ahead of planned production.

Fiscal year 2026 allocations show funding to purchase 650 LCCM-GL-class missiles worth 351 million dollars, according to the War Department comptroller’s mandatory funding plan. This funding is for the LCCM-GL variant and falls under a broader low-cost cruise missile line that includes other programs. In a separate part of the program, Leidos said the LCCM design uses an open common architecture for weapon systems and draws on the company’s existing supply chain and a scalable production approach. According to the company, the modular design offers a path to studying integration on naval platforms or developing air-launched variants. AGM-190A, whose technologies underpin LCCM development, remains a separate program from the announced initial batch of containerized munitions. These distinctions define the scope of the figures and features announced by the company and the department for each part of the program.

Leidos is scheduled to hold its third-quarter 2026 earnings call on November 3 at 8:00 a.m. Eastern Time. The date follows the War Department’s announcement of the framework agreements in May and precedes the planned start of LCCM production in 2027. The call gives the company an upcoming opportunity to update investors on its business, including industrial expansion plans and the munitions program. The available information did not include details on any updates Leidos will provide during the call about suppliers or production-related spending. The government program’s next stages include purchases of test missiles starting in June 2026, followed by purchases targeting more than 10,000 missiles starting in 2027. Leidos’ announced initial quantity remains set at 3,000 munitions.