Lockheed Martin LMT.N said on Friday the US government awarded the defense giant a $4.7 billion preliminary contract to continue critical accelerated production of the Patriot interceptor missile.
The contract for the Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE) follows a seven-year agreement with the US Department of Defense to more than triple its annual production, as countries respond to heightened geopolitical tensions.
Trump has ordered the department to rename itself the Department of War, a change that will require congressional action.
PAC-3 MSE is used in the US Army's primary high-to-medium range interceptor system and forms the backbone of US and allied air defenses.
US approves potential sale of the PAC-3 MSE to Saudi Arabia
Supplies of the PAC‑3 MSE, which Ukraine relies on to defend its energy and military infrastructure from ballistic missiles, are strained after heavy use in the Gulf against Iranian strikes, with the production boost unlikely to ease shortages this year.
Earlier this year, the US State Department approved the potential sale of the PAC-3 MSE and related equipment to Saudi Arabia for an estimated cost of $9 billion.