Northrop Grumman Enters $3 Billion Contracts to Increase Missile Defense Production

By Katherine Hamilton

Northrop Grumman signed two agreements totaling $3 billion to speed up production of missile interceptors.

The defense contractor said Monday it signed two multi-year framework deals with the Pentagon and Lockheed Martin to build more munitions technology.

Under one $2 billion framework agreement, Northrop will supply components, including solid rocket motors and ignition safety devices, for U.S. air and missile defense.

The second $1 billion agreement will enable Northrop to significantly increase monthly deliveries of terminal high-altitude area defense components over the next seven years.

The U.S. has signed several similar agreements with other contractors as weapons reserves dwindle amid the Iran war. Government officials have been debating how to manage the impact of declining munitions reserves in the Middle East war, as tensions escalated last week.

Last week, L3Harris said it would quadruple propulsion production for missile defense as part of new seven-year agreements with the Pentagon. The government in June awarded Lockheed Martin a contract worth up to $35 billion to make hundreds of missile interceptors a year.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

August 03, 2026 08:48 ET (12:48 GMT)