Wall Street Journal
Lockheed Martin said it will quadruple its Thaad missile-defense system output, to roughly 400 interceptors a year, in response to demand from Pentagon officials gearing up for conflicts on multiple fronts.
The defense contractor said Thursday it reached an agreement with the Defense Department to increase Thaad output over the next seven years, building on a separate agreement from earlier this month to sharply boost the production of Patriot missiles over the course of seven years.
To support increased production, Lockheed Martin said it would break ground on a new facility in Camden, Arkansas.
Shares were recently up 5% in premarket trading, at $628. The stock is up 30% in the past 52 weeks.
Separately, Lockheed Martin said higher demand for its weapons boosted its fourth-quarter profit and revenue.
Lockheed currently produces about 96 Thaad missile-defense systems each year. The Thaad, which stands for Terminal High Altitude Area Defense, is an American anti-ballistic missile system that can be used as backup against missiles both outside and inside the atmosphere.
Chief Executive Jim Taiclet said the company experienced unprecedented demand over the past year, ending with a record backlog of $194 billion.