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Industry · Munitions

Lockheed lines up a share of Avio's rocket motor capacity for PrSM, ER GMLRS

Initial work under the strategic cooperation agreement follows qualification, at an Avio USA plant in Hurt, Va., that is still under construction.

Lockheed Martin and Avio announced a strategic cooperation agreement for solid rocket motor (SRM) production on Tuesday, Oct. 13. It gives Lockheed access to a share of Avio's merchant supply capacity for the Extended Range GMLRS (ER GMLRS) and the Precision Strike Missile (PrSM). After qualification, initial work will focus on motors for those two programs, to be made at Avio USA's new plant in Hurt, Va.1

The agreement provides Lockheed access to a share of Avio's merchant supply capacity

Lockheed Martin and Avio announced a strategic cooperation agreement for the production of solid rocket motors on Oct. 13, 2026

Lockheed MartinER GMLRS and PrSM
strategic cooperation agreementplanned
AvioAvio USA's new facility in Hurt, Virginia
Raytheonsigned a memorandum of understanding on Nov. 10, 2025
preferred access to a shareplanned
AvioAvio USA's new facility in Hurt, Virginia

After qualification, initial work under the agreement will focus on solid rocket motors

Construction of the plant is expected to be completed by late 2028, with production anticipated to begin in early 2029

Lockheed Martin and Avio releases, Oct. 13, 2026; Avio USA release, Sept. 29, 2026; Avio releases, Nov. 10, 2025. Data as of Oct. 13, 2026.

Sources
TGOs tgos.io

Last November the two companies signed a non-binding term sheet under which Lockheed would have preferred access to a portion of the plant's capacity for "both tactical and strategic size SRMs." They said then that they intended to negotiate a Strategic Cooperation Agreement.4 The agreement now announced names two programs for that initial work. Neither company's release gives the agreement's value, motor quantities, delivery schedule or whether its terms are binding.1

Lockheed is not the plant's only prospective customer. Avio USA, the U.S. subsidiary of Rome-based Avio S.p.A., broke ground in Hurt on Sept. 29.3 Avio CEO Giulio Ranzo said the group has launched an investment of more than $500 million in new U.S. SRM capacity "with a view to become a merchant supplier to the various defense customers."1 Avio USA is developing the plant for Raytheon programs as well as Lockheed's.3 Under a memorandum of understanding signed the same day as Lockheed's term sheet, Raytheon will have preferred access to a share of the plant's production capacity.4–5 That partnership builds on a July 2024 contract for preliminary engineering work on the Mk104 rocket motor.5

Lockheed says the added capacity creates the opportunity to accelerate ER GMLRS and PrSM output.1 That supply depends on a plant where construction is expected to finish by late 2028 and production is anticipated to begin in early 2029. Motor qualification and the plant's completion are the next milestones to watch.1, 3

Sources (5)
  1. Lockheed Martin: Lockheed Martin and Avio Announce Strategic Cooperation Agreement for Solid Rocket Motor Production (Oct. 13, 2026) news.lockheedmartin.com
  2. Avio: Lockheed Martin and Avio Announce Strategic Cooperation Agreement for Solid Rocket Motor Production (Oct. 13, 2026) www.avio.com
  3. Avio USA: Avio USA Breaks Ground in Virginia on First U.S. Solid Rocket Motor Facility (Sept. 29, 2026) news.lockheedmartin.com
  4. Avio: Avio and Lockheed Martin Sign Term Sheet to Support the Establishment of a New Plant for Solid Rocket Motors in the USA (Nov. 10, 2025) www.avio.com
  5. Avio: Avio and RTX's Raytheon Sign Memorandum of Understanding to Establish New Solid Rocket Motor Facility in the U.S. (Nov. 10, 2025) www.avio.com
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Industry · Capability milestone

Lockheed reports redirecting a GMLRS rocket in flight to hit a moving target

The demonstration with the Army used a datalink and guidance system integrated through Lockheed Martin’s internal funding.

Lockheed Martin reported Oct. 28 that it redirected a GMLRS rocket in flight during a recent test with the U.S. Army at White Sands Missile Range, New Mexico. The rocket destroyed a moving target, the company said.1

Lockheed Martin, in partnership with the U.S. Army, redirected an in-flight GMLRS rocket

during a recent test at White Sands Missile Range

the team launched GMLRS from a HIMARS launcher and then used the Strigo datalink and the Remote Interceptor Guidance-360 (RIG-360), integrated through internal Lockheed Martin funding, to update the rocket’s target while in flight. The GMLRS then successfully destroyed the moving target.

Lockheed says the datalink package is directly applicable to other precision fires rockets and missiles including ER GMLRS and PrSM

Source: Lockheed Martin release, Oct. 28, 2026

Sources
TGOs tgos.io

Lockheed funded the integration of the Strigo datalink and Remote Interceptor Guidance-360 (RIG-360). After launching the rocket from a HIMARS launcher, the team used those systems to update its target while it was in flight. The release does not give the test date or describe any Army plan to buy or field the capability.1

Lockheed says the capability would give commanders a way to adjust pre-programmed strikes if battlefield conditions change. The company also says the datalink package is directly applicable to other precision fires munitions, including Extended Range GMLRS and the Precision Strike Missile (PrSM).1

Sources (1)
  1. Lockheed Martin release, Oct. 28, 2026 news.lockheedmartin.com
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Industry · Prime contractors

Lockheed's missiles segment sales rise 24% with margin nearly steady

Missiles and Fire Control accounts for most of Lockheed's backlog increase from year-end through the third-quarter close.

Lockheed Martin's Missiles and Fire Control segment increased sales 24% in third-quarter 2026.1 Sales reached $4.5 billion. Its operating margin edged down to 14.0% from 14.1% a year earlier.2 Companywide, sales rose 11% to $20.7 billion.1

Lockheed's missiles segment outpaces companywide sales growth

Year-over-year sales growth, third quarter 2026 (%)

Missiles and Fire Control24%
Lockheed Martin companywide11%

Companywide sales include Missiles and Fire Control.

Source: Lockheed Martin third-quarter 2026 financial results. As of Oct. 22, 2026.

TGOs tgos.io

Lockheed attributed the segment's sales increase primarily to production ramps on Patriot Advanced Capability-3, Terminal High Altitude Area Defense, Guided Multiple Launch Rocket Systems and Precision Strike Missile programs.1

Also announced

Costs on the F-35 Lot 20 advance acquisition contract began exceeding current contractual authorization and funding during the quarter. Production contracts for lots 20 and higher remain under negotiation. Lockheed warned that without additional authorization and funding from the government, its operating results, cash flows and financial condition will suffer in future periods.1

Missiles and Fire Control accounted for about 97% of Lockheed's backlog increase from the prior year-end through the third-quarter close, by our calculation.2 Total backlog reached $292.0 billion.1–2 It included $52.5 billion associated with the multi-year award to produce PAC-3 Missile Segment Enhancement interceptors.1

Sources (2)
  1. Lockheed Martin Reports Third Quarter 2026 Financial Results news.lockheedmartin.com
  2. Lockheed Martin 8-K, Exhibit 99.1, Oct. 22, 2026 www.sec.gov
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