L3Harris Wins $4.7 Billion Lockheed Martin PAC-3 Deal and $60 Million Air Force Sensor Contract

SentiSense · Published Sep 14, 2026, 10:07 AM ET · Updated Sep 28, 2026, 2:45 AM ET

On September 14, 2026, coverage confirmed L3Harris Technologies received a single $4.7 billion, seven-year contract from Lockheed Martin to produce propulsion systems for the PAC-3 Missile Segment Enhancement interceptor, plus a separate, much smaller $60 million U.S. Air Force contract for C-HOBS proximity sensors. The company also moved toward WIDMO radio production in Poland. SentiSense's own data show L3Harris shares closed up 1.4% on September 14, while one article's own body described a decline, so the two sources conflict on the day's move. The contracts underscore L3Harris's expanding role in U.S. and allied defense supply chains.

L3Harris Technologies has been awarded a single $4.7 billion, seven-year undefinitized contract from Lockheed Martin to produce propulsion systems, including a two-pulse solid rocket motor, Lethality Enhancer and Attitude Control Motors, for the PAC-3 Missile Segment Enhancement (MSE) interceptor used in the Patriot air-defense system. The award comes as the Army and Navy's requests for PAC-3 MSE interceptors have grown sharply, and follows Lockheed's January framework agreement to raise yearly PAC-3 interceptor production from 600 to 2,000 units. New Arkansas facilities tied to the work are expected to be operational in 2027.

Separately, L3Harris also secured a $60 million U.S. Air Force contract for continued production of its DSU-43/B Cockpit Selectable Height of Burst Sensor (C-HOBS), a proximity sensor built at the company's Cincinnati, Ohio facility. This award is distinct from both the Lockheed Martin PAC-3 deal and an earlier, separate $98 million Naval Surface Warfare Center contract for mechanical proximity fuzes announced in June.

L3Harris is also moving toward expanded radio production in Poland, having signed a memorandum of understanding with Polish firm CTM (Centrum Techniki Morskiej) at the MSPO 2026 defense exhibition for its RF-9820S WIDMO handheld radios, building on more than 12,500 L3Harris radios already in service in the country. The company has also supplied over 30,000 radio systems to Ukraine and previously began EO/IR sensor production in Katowice, Poland.

SentiSense's own market data show L3Harris LHX shares closed up 1.4% on September 14, 2026. That reading conflicts with at least one news report on the C-HOBS contract, whose own body described the stock declining both on the day and over the prior two weeks even though its headline claimed a gain, so any single-day reaction tied specifically to this contract news should be treated with caution. Market participants will watch whether L3Harris can execute on the PAC-3 propulsion ramp-up alongside its smaller sensor and international radio programs, and whether Pentagon and allied demand for interceptors continues to grow.