Leidos to produce initial batch of 3,000 low-cost containerized munitions under Department of War framework

Leidos will deliver an initial 3,000 Low-Cost Containerized Munitions to the U.S. military under a framework agreement with the Department of War tied to President Donald J. Trump and Secretary of War Pete Hegseth’s “Arsenal of Freedom” initiative. The new ground-launched cruise missile is expected to significantly enhance the country’s combat capability, underscoring the company’s ability to rapidly scale defense production.

“We’re answering the Department of War’s call to revolutionize the procurement of critical capabilities at scale, with a focus on speed to operational capability,” said Leidos Chief Executive Officer Tom Bell. “This agreement reflects the department’s appreciation of Leidos’ defense tech prowess and their trust in our proven history in delivering advanced missile technologies.”

Leidos said it will expand its workforce and enhance facilities in Huntsville, Alabama, and McEwen, Tennessee, to produce the system. Consistent with the Department of War’s push to utilize commercial products, development of the LCCM is company-funded and leverages technologies from the AGM-190A Small Cruise Missile program.

Work on the LCCM began in December, with the company reaching a conceptual design with the Pentagon that it says can achieve all mission objectives. Full system design, development and testing are planned to lead to production beginning in 2027.

At approximately twice the size of the AGM-190A, the LCCM is designed to boost mission effectiveness and fuel capacity to maximize range. It draws on a modular airframe and a common Weapon Open Systems Architecture to enable rapid integration, upgrades and mission adaptability, and utilizes Leidos’ existing supply chain and scalable production approach. While initially ground-launched, the modular design could also support maritime platform integration and air-launched variants.

Leidos said its decision to fund development and expand production aligns with its NorthStar 2030 strategy. The company cited its broader portfolio in advanced missile systems, including serving as the prime contractor for the U.S. Army’s Indirect Fire Protection Capability Increment 2 system, supporting next-generation hypersonic strike through work on the Common Hypersonic Glide Body, and delivering precision munitions integration along with advanced guidance and sensor technologies.

The company noted that certain statements are forward-looking and subject to risks and uncertainties, and referred readers to risk factors in its filings with the U.S. Securities and Exchange Commission.