Lockheed Martin aims to increase annual PAC-3 MSE missile production from about 600 to at least 2,000 over time.
- Lockheed Martin is investing $300 million to expand its Grand Prairie, Texas, facility.
- The defense giant plans to add 6,000 U.S. jobs, including 2,000 in Texas.
- Lockheed is deploying commercial manufacturing methods through partnerships with Hadrian and GM Defense.
Lockheed Martin’s (LMT) stock is eyeing its strongest week since mid-August as a $300 million Texas expansion boosts plans to ramp up missile production. CEO James Taiclet called defense demand “permanent,” betting on automation and increasing output to steer long-term growth.
Lockheed Martin stock edged 0.04% lower overnight Wednesday, after a 3.6% gain in regular session. Shares are up 2.4% so far through the week.
Lockheed’s Texas Facility Gets Massive Boost
Lockheed is committing $300 million to expand its Grand Prairie manufacturing site beyond 735,000 square feet. The plan includes 100,000 square feet of newly constructed space, alongside 85,000 square feet of existing office space that is being converted for production. The upgraded facility will support more automation, computer-driven manufacturing and precision machining.
Manufacturing firm Hadrian will set up a 24-machine automated production unit at Lockheed Martin’s Texas facility. Lockheed employees will run the machines, which are expected to start operating in early 2027.
Lockheed Martin Plans 6,000 Jobs, Taps Commercial Manufacturing
The defense giant plans to add 6,000 jobs across the U.S., with Texas accounting for 2,000 of the planned positions. Grand Prairie supports Lockheed Martin’s Missiles and Fire Control business, including the Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE), THAAD, PrSM and JATM programs. Increased component production is expected to support final assembly operations in Arkansas and Alabama.
The project builds on Lockheed Martin’s effort to combine defense manufacturing with techniques used in commercial industries. In June, the company announced a separate collaboration with GM Defense to apply automotive manufacturing practices to military production. Lockheed Martin has also committed to spending $8 billion to $9 billion through 2030 to expand more than 20 U.S. facilities.
In an interview with CNBC, CEO James Taiclet said, “Robotics are everywhere. Hadrian’s our latest partner in bringing robotics to our production system. And on the other end of the spectrum, you have one of the most storied and largest industrial companies in the world, and that’s General Motors.”
Lockheed Martin’s Patriot Missile Output In Focus
Taiclet said Lockheed Martin and government officials have developed a plan to increase annual PAC-3 MSE interceptor production from roughly 600 to 2,000 or more over time.
Taiclet told investors that the need for defense capabilities is not a short-lived trend. “I think what investors need to know and understand that this demand is not fleeting. It’s permanent,” he said.
Vertical Research analyst Robert Stallard upgraded Lockheed Martin to ‘Buy’ from ‘Hold’ and set a $600 price target, implying 15% upside from the stock’s last close. He expects the company’s missile business to grow about 11% annually through 2030 as defense spending rises.
LMT Stock: Retail View
On Stocktwits, retail sentiment around the stock remained in ‘bearish’ territory.
LMT stock has gained nearly 8% year-to-date.
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