$LMT Unveils PAC-3 Edge Patriot Interceptor With In-House Seeker, Priced Near Current PAC-3 MSE

On Oct. 9, $LMT debuted the PAC-3 Edge, which the company says will add "a revolutionary defensive capability" against hypersonic and advanced missile threats. According to Lockheed, the Edge combines a new seeker, upgraded flight controls, and a multi-pulse rocket motor from $NOC. Testing is planned for 2027, with deployment targeted for 2031.
Tim Cahill, president of Lockheed's missiles and fire control unit, told Reuters the cost would be "about that of the existing PAC-3 MSE," which Military Times puts at roughly $4 million each. Cahill also said Edge output could reach about 2,000 units a year at full production, in line with the MSE.
The seeker comes from Lockheed's Strigo Product Center, where the company says it has invested $250 million of its own money. Today's MSE relies on $BA for the seeker and $LHX for the rocket motor, and both suppliers describe their MSE work as seven-year commitments. Earlier this month, $BA received a long-term order from Lockheed to triple production of Patriot missile seekers.
- $LMT shares rose 0.3% on unveiling day, according to Stock Analysis
- The stock has traded between $437.25 and $692 over the past 52 weeks
- Stock Analysis lists a consensus Buy rating from 23 analysts, with an average price target of $625.76, implying about 23% upside
- Third-quarter results are due Oct. 22