Lockheed Martin Awarded $720 Million Contract Modification for Hellfire and JAGM Missiles
The U.S. Army announced on 13 August that it had awarded Lockheed Martin a roughly $720 million contract modification to continue producing Hellfire and Joint Air-to-Ground Missiles (JAGM). Lockheed Martin Corp.(Orlando, Florida) was awarded a $720,120,883 modification for Production Year Four of HELLFIRE/JAGM missiles. The award, managed by the Army Contracting Command at Redstone Arsenal, Alabama, brings the total contract value to approximately $1.49 billion. Work will take place at Lockheed Martin’s plant in Ocala, Florida, and is scheduled to continue through September 30, 2028. Army procurement funds for fiscal 2025 were fully obligated on award, reflecting the immediate funding of this missile production cycle.
The Hellfire and JAGM missiles produced under this contract are precision air-to-ground weapons widely used for close support and anti-armor missions. The Hellfire family is a laser-guided, subsonic missile developed initially to destroy tanks and other hardened targets. Hellfire provides “precision striking power against tanks, structures, bunkers and helicopters,” and it remains highly effective against any known armored threat.
The JAGM (Joint Air-to-Ground Missile) is the next-generation successor to the Hellfire. It features upgraded guidance and targeting capabilities. JAGM retains Hellfire’s basic form factor and launch platforms (typically helicopters and fixed-wing aircraft), but adds a dual-mode seeker that combines semi-active laser guidance with millimeter-wave radar. It enables JAGM to engage both stationary and moving targets in adverse weather conditions or when visibility is obscured. JAGM is already slated to replace Lockheed-made Hellfire missiles aboard American aircraft, first being fielded on platforms like the AH-64E Apache and AH-1Z Viper helicopters.
The $720 million production contract is framed to support not only the U.S. Army’s needs but also the demand of allied nations. It covers FMS (Foreign Military Sales) customers as well as U.S. forces. For example, Hellfire currently has over 30 international users and recent contracts have added new customers like Poland. Many U.S. allies (including the U.K., Poland and the Netherlands) are pursuing JAGM to equip their own helicopters and drones. Lockheed Martin notes that the contract’s flexible structure will enable it to meet growing demand both domestically and abroad.
Hellfire has become a staple of precision engagement for the U.S. and JAGM advances that legacy by providing enhanced multi-spectral targeting for future battlefield needs. The new production contract ensures that U.S. forces and their allies will continue to receive these key air-to-ground weapons in the upcoming years.