The U.S. Department of Defense has issued an urgent call to America’s missile makers: dramatically ramp up production to meet growing global threats. This directive constitutes a seismic shift in defense spending that could deliver massive gains for Boeing (BA), which holds some of the military’s most critical missile contracts.
Recent reports show the Pentagon aims to secure capacity for nearly 2,000 PAC-3 missiles from fiscal years 2024 to 2026 with a new $9.8 billion contract to Lockheed Martin (LMT).
This production surge comes as geopolitical tensions rise and the U.S. military consumes munitions at an unprecedented rate, creating what defense analysts call a “golden age” for missile contractors.
Boeing could become one of the biggest beneficiaries.
Boeing holds multiple high-value contracts that position it perfectly for the production surge. The company’s Joint Direct Attack Munition (JDAM) program received a massive $7.5 billion contract last year to convert “dumb” bombs into precision-guided munitions.
These kits, which Boeing produces at its St. Louis facility, transform standard bombs into GPS-guided weapons capable of striking targets with pinpoint accuracy. With the Pentagon pushing to increase JDAM production, this contract alone could see significant expansion.
Even more compelling is Boeing’s role as the sole producer of the GBU-57 Massive Ordnance Penetrator (MOP), a 30,000-pound bunker-busting behemoth designed to destroy deeply buried targets.
After the weapon’s first combat use against Iranian nuclear facilities, the Air Force is preparing a $123 million contract to replenish depleted stocks. Budget documents show the Pentagon intends to at least triple MOP production capacity, with Boeing as the prime contractor. The company is also co-developing the Next Generation Penetrator (NGP) with Applied Research Associates.
Boeing’s Defense, Space & Security segment is quietly becoming quite profitable. In Q2 2025, BDS posted a 1.7% operating margin. Analysts expected negative margins throughout the year. It had $110 million in Q2 operating profit ($913 million loss in the year-ago quarter) on $6.6 billion in revenue, with backlog growing to $74 billion. International orders constitute 22% of this backlog as allies rush to replenish their own munitions stockpiles.
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