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Lockheed Martin unveils PAC-3 ACE™, a high-performance, low-cost interceptor

Sienna Parker by Sienna Parker
July 20 2026
in Industry
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Lockheed Martin unveils PAC-3 ACE™, a high-performance, low-cost interceptor
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Lockheed Martin (NYSE: LMT) unveiled the PAC-3 Adapted Capability Effector (PAC-3 ACE), a lower-cost interceptor designed to defeat a broad set of air and missile threats at less than half the per-unit cost of the PAC-3 MSE.

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The company said PAC-3 ACE is intended to provide allied forces with a rapidly fielded, complementary air-defense option that can be deployed in record time. Development will involve American and European industry partners and suppliers to strengthen the resilience of the U.S. defense industrial base worldwide.

Built on the PAC-3 fire-control system and fully linked to the Patriot weapon system and the Integrated Battle Command System (IBCS), the interceptor is intended to accelerate development, testing and deployment beyond traditional timelines. The approach is aimed at enabling allies to field a common interceptor while expanding the broader PAC-3 network.

“American and allied warfighters need a solution that is battle-tested and budget-smart, and PAC-3 ACE delivers exactly that by building on the unrivaled performance of the PAC-3 MSE,” said Tim Cahill, president, Lockheed Martin Missiles and Fire Control. “As we look to partner with our allies, we can further enhance resiliency and ensure our forces can swiftly counter emerging threats today and tomorrow.”

According to the company, the system is designed to lower cost-per-kill while maintaining PAC-3 reliability and increasing magazine depth; leverage existing PAC-3 software and IBCS integration to shorten development cycles and enable rapid initial production; counter airbreathing threats, cruise missiles, and close- to short-range ballistic missiles from a single platform; and support joint development and production with European partners to create a shared, interoperable interceptor that reinforces transatlantic defense.

Tags: Lockheed MartinPAC-3 MSETim Cahill
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Sienna Parker

Sienna Parker

Sienna Parker is a journalist reporting on major corporations in the defense industry and key transactions shaping the sector. She focuses on industry movements, mergers and the business of defence.

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