TROY – October 29, 2026 -- Lockheed Martin (NYSE: LMT) has won a $694 million U.S. Air Force contract to produce the Air-Launched Rapid Response Weapon (ARRW), a hypersonic missile integrated on the B-52 bomber.
The award follows years of joint development and testing between the company and the Air Force. ARRW is designed to travel at more than Mach 5 and engage targets from significant standoff ranges.
Lockheed Martin breaks ground on 47,000-square-foot ARRW production expansion in Alabama
The company began construction on an expansion of Building P-20 in Troy, Alabama, the same day. The addition of 47,000 square feet of production space will triple the facility's current production area. Lockheed Martin expects the project to create new jobs over the next four years, on top of almost 4,000 employees it already has in Alabama. The workforce will build ARRW using advanced manufacturing, robotics and digital technologies.
Lockheed Martin pre-funded $67 million of ARRW production capacity before government money arrived
The company paid for the efforts, materials and equipment needed to start production ahead of the award. That includes $67 million for the facility expansion and equipment. The spending falls under Lockheed Martin's $8-9 billion investment through 2030 to meet munitions demand. It also continued research and development to support rapid delivery of an air-launched hypersonic strike capability.
ARRW uses advanced materials to withstand extreme heat and defeat a wide range of defenses
According to the company, the missile uses advanced materials to manage extreme heat. An advanced technology package maintains accuracy and lethality, and the weapon is built to overcome a wide range of defenses.
Tim Cahill, president of Lockheed Martin Missiles and Fire Control, said the award shows the company can develop and begin production of cutting-edge systems at "unprecedented speed and scale." He said ARRW expands the weapon systems portfolio and gives the Air Force a sustained, high-precision hypersonic capability.
Lockheed Martin cites more than 60 years of hypersonic strike experience. It says the work supports the U.S. National Defense Strategy and the security objectives of allied nations.