Stock Markets August 12, 2026 05:30 PM

Lockheed Martin Secures $211.4 Million Modification to UAE THAAD Launcher Contract

Contract change raises original 2019 agreement to $1.05 billion as Lockheed Martin Space to build Configuration 3 launchers

By Derek Hwang
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The U.S. Department of War has awarded Lockheed Martin Corp. a $211.4 million modification to an existing Foreign Military Sales contract to provide Configuration 3 THAAD launchers to the United Arab Emirates. Production is assigned to Lockheed Martin Space in Sunnyvale, California, with work scheduled from August 2026 through January 2031.

Lockheed Martin Secures $211.4 Million Modification to UAE THAAD Launcher Contract
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Key Points

  • Lockheed Martin received a $211.4 million contract modification from the U.S. Department of War for THAAD launchers destined for the UAE.
  • The change raises the original 2019 contract's total to $1.05 billion and assigns production of Configuration 3 THAAD Launchers to Lockheed Martin Space in Sunnyvale.
  • Work is scheduled between August 2026 and January 2031; the Missile Defense Agency in Huntsville is the contracting activity and the modification was solicited with one offer received.

The U.S. Department of War announced today that Lockheed Martin Corp. (NYSE:LMT) will receive a $211.4 million modification to an earlier contract to supply missile defense launchers to the United Arab Emirates. The adjustment raises the total value of the original 2019 agreement to $1.05 billion.

Under the terms of the modification, Lockheed Martin Space, operating out of Sunnyvale, California, is tasked with manufacturing new Configuration 3 THAAD Launchers as part of a Foreign Military Sales arrangement. The Missile Defense Agency in Huntsville, Alabama, is listed as the contracting activity for the award.

The performance window for the work extends from August 2026 through January 2031. The agency's notice states that it solicited one offer and received one offer in relation to this modification. UAE Foreign Military Sales funds in the amount of $211.4 million are being obligated as part of the contract change.

THAAD - Terminal High Altitude Area Defense - is identified in the announcement as a missile defense system intended to intercept ballistic missiles. The contract modification was issued under case HQ0147-19-C-5001 and is recorded as modification number P00082.

This award is a modification to a contract originally established in 2019 and now increased in total scope and value. The work assignment, funding obligation, single-offer procurement and the multi-year schedule are set out in the agency's announcement.


Summary of transaction details

  • Modification value: $211.4 million.
  • Total contract value after modification: $1.05 billion.
  • Prime contractor: Lockheed Martin Space, Sunnyvale, California.
  • Product: Configuration 3 THAAD Launchers (Foreign Military Sales to the UAE).
  • Performance period: August 2026 - January 2031.
  • Contracting activity: Missile Defense Agency, Huntsville, Alabama.
  • Contract reference: HQ0147-19-C-5001, modification P00082.

Risks

  • The contract spans a multi-year performance period from August 2026 through January 2031, introducing execution and schedule risk over an extended timeline.
  • The agency solicited and received a single offer for this modification, indicating limited competition in the procurement process.
  • The modification obligates $211.4 million in UAE Foreign Military Sales funds under the contract change, tying future performance to obligated foreign military funds.

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