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U.S. Air Force Awards $694M Contract to Lockheed for Hypersonic Missile

U.S. Air Force Advances Hypersonic Weaponry with Major Contract Award

The U.S. Air Force has cemented its commitment to advancing hypersonic technology with a significant contract awarded to defense giant Lockheed Martin. Valued at approximately $694 million, this contract signifies a pivotal shift from testing to production for the AGM-183A Air-Launched Rapid Response Weapon (ARRW).

Lockheed Martin will spearhead the production and deployment of the ARRW, a hypersonic missile designed to enhance the U.S. military’s strategic capabilities. This development was confirmed in a recent announcement, underscoring the weapon’s transition from prototype and testing phases to full-scale production.

U.S. Air Force Secretary Troy Meink emphasized the importance of this transition, stating, “This is a turning point in our advanced weapons roadmap. By moving ARRW from test to production, we’re providing our combatant commanders with a credible, high-speed strike weapon capable of penetrating the most advanced anti-access and area-denial systems.”

This contract is a part of the Defense Department’s Enterprise-Wide Agile Acquisition Contract, reflecting ongoing efforts to modernize the U.S. military’s Arsenal of Freedom. The ARRW aims to reach speeds exceeding Mach 5, employing a solid-fuel rocket booster to launch a hypersonic glide vehicle. Such capabilities are intended to enable the U.S. Air Force to engage heavily fortified targets from a considerable distance with speed and precision.

Air Force Chief of Staff Gen. Ken Wilsbach highlighted the strategic advantages of the ARRW, noting, “Fielding ARRW enhances our ability to hold targets at risk anywhere around the world. This hypersonic weapon provides the Joint Force a flexible and rapid response option for highly contested environments.”

Operational security considerations have kept details about the production timeline and quantity of missiles under wraps. However, this contract marks a renewed focus on hypersonic capabilities after a previous decision to halt ARRW purchases in 2023 due to unsuccessful tests and a shift in focus to other programs.

In 2025, former Chief of Staff Gen. David Allen indicated a revitalization plan for the ARRW, proposing new funding as part of the fiscal 2026 budget. The Air Force allocated roughly $387 million for ARRW in the fiscal 2026 budget and increased the funding to $452 million for fiscal 2027, according to budget documents.