Pentagon Awards $58.6 Billion to Triple PAC-3 Output as Missile Orders Jump 188%

3 articles · Updated · CSIS | Center for Strategic and International Studies · Aug 26

$58.6 billion in July contracts for Lockheed Martin and $22.9 billion for RTX mark the Pentagon’s biggest recent push to rebuild missile stockpiles, alongside a $35 billion THAAD deal and a $745 million SM-3 award.
FY2027 budget plans show how sharply demand has shifted: PAC-3 requests rise 839% to 3,203 units, THAAD 2,216% to 857, and Tomahawk 1,740% to 1,049 as wars tied to Iran and Ukraine expose shortages.
The buildup is also tilting toward cheaper weapons that can arrive faster, including a $1.1 billion Drone Dominance program targeting 340,000 small drones by end-2027 and affordable-missile programs for 27,000 air-launched and 10,000 ground-launched cruise missiles.
Production timelines still diverge sharply: low-cost systems can move from agreement to first deliveries within about a year, while legacy missiles often need 25 to 51 months and major factory expansion to scale.
Congressional funding remains the main constraint, with 92% of FY2027 PAC-3 requests tied to uncertain mandatory spending even as contractors lift capital expenditures and the Pentagon pushes a broader high-low mix of munitions.