Lockheed Martin Announces New Lower-Cost Air-Defense Missile at Farnborough Airshow

Lockheed Martin unveiled the PAC-3 Adapted Capability Effector missile on 20 July 2026 at the Farnborough Airshow. The interceptor is designed to cost less than half the roughly US$4 million per round of the existing PAC-3 MSE model while retaining the same performance characteristics and hit-to-kill technology. The company said it will develop and manufacture the PAC-3 ACE with U.S.

And European industry partners. Initial production could begin within 36 months of the announcement. ” Lockheed Martin stated that the PAC-3 ACE responds to customer requests for lower unit costs. The company did not release a specific unit cost for the new missile.

U.S. Army budget documents have previously listed the PAC-3 MSE at roughly US$4 million per round. Demand for air-defense systems has risen since Russia’s 2022 full-scale invasion of Ukraine.