Lockheed Martin announced on October 27, 2026, that it has been awarded a $694 million contract from the U.S. Air Force for production of the Air-Launched Rapid Response Weapon (ARRW), a hypersonic strike system integrated on the B-52 bomber.

Key Highlights

  • Contract value: Lockheed Martin was awarded a $694 million contract from the U.S. Air Force for ARRW production.
  • Facility expansion: Lockheed Martin broke ground on an expansion of Building P-20 in Troy, Alabama, adding 47,000 square feet of production space that will triple the current facility's capacity.
  • Job creation timeline: The expansion is expected to generate new American jobs over the next four years, adding to the nearly 4,000 Lockheed Martin employees already in Alabama.
  • Pre-award investment: The company disclosed it had already committed $67 million of its own funds for ARRW production facility expansion and equipment prior to receiving government funding.
  • Speed capability: According to the filing, ARRW will travel at speeds greater than Mach 5, more than five times the speed of sound.
  • Broader investment context: The company cited an $8-9 billion investment through 2030 to meet munitions demand, of which the ARRW facility investment is a part.

Lockheed Martin's ARRW Contract and Troy, Alabama Production Expansion

According to the announcement, the U.S. Air Force awarded Lockheed Martin a $694 million production contract for the Air-Launched Rapid Response Weapon, which the company described as delivering "sustained and maneuverable hypersonic capabilities." The weapon is integrated on the B-52 aircraft and is designed to travel at speeds greater than Mach 5, enabling rapid engagement of targets from significant standoff ranges, the filing states.

The company disclosed that it broke ground on the same day on an expansion of Building P-20 in Troy, Alabama, which will add 47,000 square feet of production space and triple the facility's current capacity. The expansion is slated to support new American job creation over the next four years. Lockheed Martin reported that the facility will incorporate advanced manufacturing, robotics, and digital technologies to prepare its workforce for ARRW production.

Lockheed Martin disclosed that it had already funded efforts, materials, and equipment to initiate ARRW production ahead of the contract award, including a $67 million company investment in the production facility and equipment. Tim Cahill, president of Lockheed Martin Missiles and Fire Control, was quoted in the filing stating that the award "showcases Lockheed Martin's ability to develop and begin production on cutting-edge systems at unprecedented speed and scale." The company also referenced its broader $8-9 billion investment commitment through 2030 to address munitions demand. Lockheed Martin trades on the NYSE under the ticker NYSE:LMT.

What Was Disclosed

Lockheed Martin disclosed a $694 million U.S. Air Force ARRW production contract, a 47,000-square-foot facility expansion in Troy, Alabama, a $67 million pre-award company investment, and an overall $8-9 billion munitions investment commitment through 2030.