# Air Force moves ARRW into production with $694 million Lockheed Martin contract

Lockheed Martin is expanding ARRW production space in Alabama. The Air Force is withholding missile quantities and delivery dates.

Published 2026-10-27 by TGOs. Canonical: https://tgos.io/news/2026/10/27/air-force-moves-arrw-into-production-with-694-million/

The Air Force awarded Lockheed Martin a $694 million contract for production and fielding of the AGM-183A Air-Launched Rapid Response Weapon (ARRW).[1] Awarded Sept. 29, 2026, the contract marks the boost-glide hypersonic missile program's formal transition from prototyping and flight testing into production.[1] The service announced it Oct. 26.[1]

Lockheed says it invested $67 million in ARRW production facility expansion and equipment before receiving government funding.[2] The company broke ground Oct. 27 on an expansion of Building P-20 in Troy, Alabama.[2] It says the addition will provide 47,000 square feet for ARRW production and triple the facility's production space.[2]

Defense News reported that the Air Force moved to halt ARRW procurement in 2023 after unsuccessful tests and opted to focus on the Hypersonic Attack Cruise Missile.[3] Citing budget documents, the outlet reported roughly $387 million in the Air Force's fiscal 2026 procurement request for ARRW.[3] It also reported a $452 million request for the program in fiscal 2027.[3]

The Air Force is withholding quantities and delivery dates, citing operational security.[1] Its announcement does not specify how much of the $694 million contract value is obligated.[1]

## Why it matters

Carlton Haelig, a fellow in the Defense Program at the Center for a New American Security, told DefenseScoop that some contract funding could go toward starting the production line.[4] He predicted it will take multiple years to get ARRW to units at scale and said how quickly the missile can be produced remains the big constraint.[4]

## Sources

1. Air Force: DAF awards ARRW production contract (Oct. 26, 2026) <https://www.af.mil/News/Article-Display/Article/4633841/daf-awards-arrw-production-contract-establishes-new-hypersonic-capabilities/>
2. Lockheed Martin: Lockheed Martin to Add Air-Launched Hypersonic Missile to the American Arsenal of Freedom (Oct. 27, 2026) <https://news.lockheedmartin.com/2026-10-27-Lockheed-Martin-to-Add-Air-Launched-Hypersonic-Missile-to-the-American-Arsenal-of-Freedom>
3. Defense News: US Air Force awards Lockheed Martin $694M hypersonic missile production contract <https://www.defensenews.com/industry/techwatch/2026/10/27/us-air-force-awards-lockheed-martin-694m-hypersonic-missile-production-contract/>
4. DefenseScoop: Air Force launches next phase of hypersonic missile program with $694M contract award for ARRW <https://defensescoop.com/2026/10/27/air-force-hypersonic-missile-production-contract-lockheed-martin/>