Chance to Shoot Down 3,000 Iskanders: Boeing Signs $2.7B Contract for Patriot PAC-3 Guidance Heads

Boeing has secured several contracts to manufacture guidance heads for the Patriot PAC-3 missile system, the company shared in a press release.

Within the agreements, Boeing will deliver more than 3,000 guidance heads at a rate of up to 750 units per year through 2030. The total value of the contracts is approximately $2.7 billion.

The company noted that demand for PAC-3 missiles has increased due to ongoing conflicts and evolving threats in Ukraine, the Middle East, and the Indo-Pacific region.

Boeing noted that it had set new production records and plans to deliver 650 to 700 guidance heads by the end of 2025.

Recently, Lockheed Martin, another key manufacturer of the PAC-3 interceptor, was awarded a contract for nearly 2,000 missiles, valued at $9.8 billion.

“Boeing is working closely with prime contractor Lockheed Martin and the U.S. Army to further increase production and meet new targets for the PAC-3 interceptor,” the company stated.

The ultimate recipients of the missiles have not yet been confirmed, although purchases are expected by the United States and its allied countries in Asia, Europe, and the Middle East. Taiwan, for example, is reportedly preparing to acquire around 500 PAC-3 MSE interceptors.

The contract covers the supply of PAC-3 MSE missiles for multiple divisions, along with associated equipment, with deliveries expected to start in 2025–2026, according to Boeing.

Some of the orders may also support Ukraine. NATO member states are purchasing Patriot missiles through the Prioritized Ukraine Requirements List (PURL) program, which funds U.S. weapons for the Ukrainian armed forces with allied contributions.

At the same time, these countries are acquiring missiles for their own stockpiles, with some production being localized in Germany, possibly in connection with this contract.

In August, the U.S. Senate proposed allocating $1.2 billion to establish an additional production line for scarce PAC-3 guidance systems.

Creating an alternative supplier would help offset Boeing’s limited production capacity, which currently cannot meet growing global demand.