Lockheed Martin Awarded $9.5 Billion Contract for LRASM and JASSM
The U.S. Department of Defense announced a significant contract for Lockheed Martin’s long-range cruise missiles. The Air Force Life Cycle Management Center at Eglin AFB awarded Lockheed’s Missiles and Fire Control unit a firm-fixed-price contract modification valued at approximately $4.3 billion. It increased the total contract to approximately $9.485 billion. The award covers the production of lots 22–26 of the AGM-158B Joint Air-to-Surface Standoff Missile (JASSM) and lots 9–12 of the AGM-158C Long-Range Anti-Ship Missile (LRASM). The deal also includes Foreign Military Sales to Poland, the Netherlands, Japan, and Finland.
The award spans five production lots of JASSM and four of LRASM, amounting to what industry sources say will be hundreds or even thousands of missiles. Pentagon officials note these weapons will equip both the U.S. Air Force and Navy units, with FMS deliveries to Poland, the Netherlands, Japan, and Finland. Roughly $1.4 billion was obligated at contract award (primarily Air Force funds). The deal is part of the Pentagon’s broader strategy of multi-year procurement to provide a strong demand signal and encourage higher production rates. Lockheed executives note that ramping up JASSM and LRASM production is “essential for American and allied national security,” giving warfighters a long-range strike capability against emerging threats.
Lockheed’s AGM-158 missile family includes JASSM (a stealthy, long-range air-launched cruise missile for precision strikes) and LRASM (its anti-ship variant). JASSM is designed to strike high-value and heavily protected targets from a safe distance while remaining undetected by enemy air defenses. LRASM is a precision anti-ship missile that can engage hostile vessels from beyond the range of their defensive weapons.
In September 2024, the Air Force gave Lockheed a $3.23 billion sole-source contract for JASSM-ER and LRASM production (covering JASSM Lot 22 and allied orders). In March 2025, it added a $1.9 billion modification covering additional missile lots. To meet the growing demand, Lockheed is expanding its factories, including the addition of new automated lines and a 225,000-square-foot “intelligent factory” in Troy, Alabama. These efforts aim to increase U.S. and allied stockpiles of JASSM and LRASM, bolstering deterrence with advanced long-range standoff weapons.