WASHINGTON — The U.S. Army has awarded Lockheed Martin a $1.08 billion Other Transaction Agreement to develop the Future Interceptor, a next-generation missile designed to counter hypersonic weapons and advanced ballistic threats. The agreement was announced by U.S. Army Public Affairs on October 29, 2026.
The project has a total estimated value of $1.08 billion, including $660.4 million in government funding and a $423 million cost-sharing commitment from Lockheed Martin. The program aims to improve interception range, operating altitude, speed and maneuverability to strengthen the Army’s layered air and missile defense capabilities.
PAC-3 Edge Features and Upgrades
Lockheed Martin is developing the PAC-3 Edge as its interceptor for the Future Interceptor program. The missile builds on the existing Patriot PAC-3 Missile Segment Enhancement (MSE) design, incorporating new propulsion, guidance and control technologies.
The interceptor features a multi-pulse solid-fuel rocket motor manufactured by Northrop Grumman and an upgraded guidance system. Its new homing seeker is being developed at Lockheed Martin’s Strigo Product Center.
Lockheed Martin has invested $250 million in the Strigo facility to support the development of advanced seeker technologies intended to improve the missile’s ability to track fast-moving and maneuverable targets.
The PAC-3 Edge retains the PAC-3 family’s hit-to-kill interception approach, while incorporating upgrades intended to improve performance against advanced threats at extended ranges and altitudes.
Testing and Deployment Timeline
Flight testing of PAC-3 Edge prototypes is scheduled to begin in 2027. The Army will evaluate the system’s performance against established operational requirements before making decisions on further development and production.
The program aims to have the interceptor ready for potential deployment by 2031. Future decisions will depend on prototype performance, operational requirements, available resources and applicable acquisition procedures.
Integration With U.S. Army Defense Systems
The PAC-3 Edge is designed to integrate with the U.S. Army’s broader air and missile defense architecture, including the Integrated Battle Command System (IBCS), standard M903 Patriot launchers, new containerized launchers and the HIMARS Flex multiple launch rocket system.
The development effort comes amid continued demand for Patriot air defense systems in Ukraine and the Middle East, alongside the development of highly maneuverable missiles by foreign adversaries.
The current agreement focuses on prototype development, testing and evaluation, rather than full-rate production. The Army will determine the next steps after assessing whether the interceptor meets its operational requirements.
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