Lockheed Martin Wins $694 to Produce Air-Launched Hypersonic Missiles

Lockheed Martin (NYSE: LMT) has received a $694 million contract from the U.S. Air Force to produce its Air-Launched Rapid Response Weapon (ARRW), an air-launched hypersonic strike system designed to travel at speeds greater than Mach 5.

The award follows several years of development and testing between the company and the United States Air Force, moving the program toward sustained production.

Designed for integration with the B-52 bomber, ARRW is intended to engage targets at significant distances while maintaining maneuverability at hypersonic speeds.

The system uses advanced materials to withstand extreme temperatures and is designed to maintain accuracy while operating against a range of air defense systems.

Alongside the contract announcement, Lockheed Martin broke ground on an expansion of its Building P-20 facility in Troy, Alabama.

The project will add 47,000 square feet of manufacturing space, tripling the facility’s existing production footprint and supporting new jobs over the next four years. The expanded site will use advanced manufacturing processes, robotics and digital technologies to support ARRW production.

Lockheed Martin said it had already committed $67 million toward facility expansion, equipment and production preparations ahead of the government award.

The investment is part of the company’s broader plan to spend between $8 billion and $9 billion through 2030 to expand munitions production capacity.

The contract adds to Lockheed Martin’s hypersonic weapons portfolio and represents a transition for ARRW from development and testing toward production for the U.S. Air Force.

"The ARRW production contract award showcases Lockheed Martin's ability to develop and begin production on cutting-edge systems at unprecedented speed and scale," - Tim Cahill, president at Lockheed Martin Missiles and Fire Control.

The company will now scale manufacturing capacity to support delivery of the system as the U.S. military expands its focus on hypersonic strike capabilities.

Image credits: Lockheed Martin