Lockheed Martin Wins $694 Million Contract for New US Hypersonic Missile

The US Air Force has awarded Lockheed Martin a $694 million contract to produce the AGM-183A Air-Launched Rapid Response Weapon (ARRW), a high-speed us hypersonic missile. This decision, announced on October 26, 2026, moves the weapon from testing into serial production after years of technical failures and budget uncertainty.
- Lockheed Martin received the $694 million award on September 29, 2026, according to aviationtoday.in.
- The missile is designed to fly faster than Mach 5, or five times the speed of sound, as reported by yellowhammernews.com.
- Lockheed Martin is expanding its Troy, Alabama facility by 47,000 square feet to support this production, according to aerotime.aero.
What is the ARRW hypersonic missile?
The AGM-183A ARRW is a boost-glide weapon designed to strike high-value targets from long distances. It uses a solid-fuel rocket booster to accelerate the missile to hypersonic speeds before releasing a glide vehicle that maneuvers toward its target. This design allows launch aircraft to stay far away from heavily defended areas.
The weapon travels at speeds exceeding Mach 5. According to yellowhammernews.com, the missile uses advanced materials to survive extreme heat. Its speed and ability to maneuver are intended to make it difficult for enemy air-defense systems to intercept the projectile.
The Air Force plans to deploy the missile on the Boeing B-52H Stratofortress bomber. While the B-52H is the primary platform, armyrecognition.com notes that carriage testing has also occurred on the B-1B Lancer.
Why did the program face previous setbacks?
The ARRW program has struggled with technical failures and shifting government priorities since its development began in 2018. Early tests in 2021 were unsuccessful, including an April attempt that failed to complete its launch sequence. A July 2021 test saw the booster separate but fail to ignite its rocket motor, according to armyrecognition.com.
Funding instability also threatened the missile. In March 2023, Air Force officials stated they would not purchase the missiles, turning instead to the Hypersonic Attack Cruise Missile (HACM) program. This shift was confirmed by yellowhammernews.com, which reported that the 2025 budget request contained no procurement funding for ARRW.
The program finally saw success in 2022 with a successful flight test in May. Later, a March 2024 demonstration in Guam tested the weapon from a forward B-52H location. This test helped provide more realistic data on how the weapon would perform in actual combat zones.
How does each side describe the contract?
The US Air Force views the contract as a vital step in maintaining a technological edge. They see it as a way to provide commanders with a weapon that can bypass modern defenses. The service has not released specific details on how many missiles are being ordered to protect operational security.
"By moving ARRW from test to production, we’re providing our combatant commanders with a credible, high-speed strike weapon capable of penetrating the most advanced anti-access and area-denial systems,"
— Troy Meink, Air Force Secretary
Lockheed Martin describes the award as a validation of their manufacturing speed. The company is using the contract to justify massive investments in its Alabama facilities. They view the production move as a way to strengthen the strategic capabilities of the US military.
"The ARRW production contract award showcases Lockheed Martin’s ability to develop and begin production on cutting-edge systems at unprecedented speed and scale,"
— Tim Cahill, president of Lockheed Martin Missiles and Fire Control
How is Lockheed Martin expanding in Alabama?
Lockheed Martin is rapidly increasing its manufacturing footprint in Alabama to meet the new demand. The company is expanding Building P-20 in Troy, adding 47,000 square feet of space. This expansion will triple the current production capacity for the ARRW missile, according to aerotime.aero.
The company has already invested $67 million in this expansion and new equipment. This spending happened before the government contract was officially awarded. Lockheed Martin plans to invest between $8 billion and $9 billion through 2030 to satisfy the general demand for military munitions.
Other Alabama sites support different programs. In Courtland, the company opened a missile assembly facility in 2021 and another 88,000-square-foot facility in June 2026. These sites support the Next Generation Interceptor program and the US Navy's Conventional Prompt Strike program, as reported by yellowhammernews.com.
What is the history of the ARRW program?
The ARRW program began in 2018 through research by the US Air Force and DARPA. Initially, Lockheed Martin held a design contract worth up to $480 million. The program originally aimed to be operational by 2022, but technical issues delayed this goal.
A timeline of key events includes:
- 2018: Program development begins.
- April 2021: An early launch attempt fails.
- May 2022: The first successful flight test is achieved.
- December 2022: A full operational prototype is launched from a B-52H.
- March 2023: The Air Force decides to halt procurement.
- June 2025: Leadership signals a return to procurement plans.
- September 2026: The production contract is awarded.
The program is now part of a dual-track hypersonic strategy. The Air Force is pursuing both the rocket-boosted ARRW and the air-breathing scramjet-powered Hypersonic Attack Cruise Missile (HACM). This ensures the military has different types of high-speed options for different combat scenarios.
What happens next for the program?
The immediate focus is on building the production capacity in Alabama. Lockheed Martin expects the expansion to create new jobs over the next four years. However, the exact number of missiles produced and their delivery dates remain secret for security reasons.
The US Air Force is also seeking more money to keep the program running. The fiscal 2027 budget request includes $452 million for ARRW production. This request must still pass through Congress. According to aviationtoday.in, future annual spending could reach up to $621 million between 2028 and 2031.
The success of the program will depend on how quickly these missiles can be integrated into the B-52H fleet. If the production ramp-up meets expectations, the ARRW will become a standard part of the US strategic arsenal within the next few years.
Frequently Asked Questions
How fast does the ARRW missile travel?
The missile is designed to fly at hypersonic speeds, which means it travels faster than Mach 5, or five times the speed of sound.
Which aircraft will carry the ARRW missile?
The Boeing B-52H Stratofortress is the primary launch platform, though testing has also been performed with the B-1B Lancer.
Where is the missile being manufactured?
Lockheed Martin is producing the missiles at its facilities in Alabama, specifically expanding a production building in Troy.
Sources
- 1.aviationtoday.inUS Air Force Awards Lockheed Martin $694 Million Contract For ARRW Hypersonic Missile
- 2.aerotime.aeroUS Air Force puts Lockheed Martin’s troubled hypersonic ARRW into production
- 3.armyrecognition.comU.S. Air Force revives AGM-183A ARRW hypersonic missile with $694 million production contract.
- 4.yellowhammernews.comLockheed Martin lands $694 million Air Force contract to expand Alabama manufacturing at ‘unprecedented speed and scale’


