U.S. Army orders new-production PAC-2 Patriot missiles for first time in over 30 years in $441.6 mln deal

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Raytheon Secures First U.S. Domestic Order for New PAC-2 Interceptors in Over 30 Years

Raytheon has announced a new domestic order for PAC-2-series interceptors for the Patriot surface-to-air missile system — the first time the U.S. military has purchased new PAC-2s in more than three decades, according to the company.

The development comes amid persistent concerns about the sufficiency of American stockpiles of high-end anti-air interceptors and other critical munitions, with alarm bells ringing loudly due to the ongoing conflict with Iran. Global demand for Patriot systems and their interceptors remains at a high point, driven heavily by fighting in the Middle East and the war in Ukraine. Patriot has experienced a broader renaissance in recent years amid an evolving threat ecosystem, particularly from Russia and China.

Key Details from Raytheon's Quarterly Earnings Call

Patriot was a major topic during Raytheon's quarterly earnings call this morning. Raytheon is the prime contractor for the Patriot system and the PAC-2 interceptor, while Lockheed Martin serves as the prime contractor for the separate PAC-3 family of interceptors.

"Raytheon booked nearly $20 billion of awards, resulting in a book-to-bill [ratio] in Q2 [second quarter of the 2026 fiscal year] of 2.4[%]," said Christopher Calio, President and CEO of Raytheon (now formally called RTX). "These bookings included over $5 billion of GEM-T Patriot effectors, driven by international customers, and our first domestic GEM-T production order in over 30 years."

Calio did not elaborate on the domestic order, but it appears to reference a contract the U.S. Army quietly awarded in April. That deal was valued at $441.6 million and was said to support Operation Epic Fury against Iran.

Understanding the GEM-T Interceptor

• GEM-T stands for Guidance Enhanced Missile-Tactical
• It is the only version of the PAC-2 still in production today
• The configuration has received various upgrades over the years

The nomenclature can be confusing. Raytheon began production of the baseline Guidance Enhanced Missile (GEM) variant (designated MIM-104D) in the mid-1990s. Compared to earlier PAC-2 versions, GEM featured:

• A new seeker for improved engagement against smaller targets or those with smaller radar cross-sections
• Changes to the missile's fuze to improve effectiveness against fast-moving ballistic missiles

A GEM+ configuration was subsequently developed, offering even better accuracy, performance, and reliability. The U.S. Army later sent stocks of baseline GEM and older PAC-2 interceptors back to Raytheon to be upgraded to GEM+ standard. The resulting missiles were collectively designated MIM-104Es, with deliveries starting in the early 2000s. The GEM-T moniker was originally applied to MIM-104Es rebuilt from MIM-104Ds, further optimized against tactical ballistic missiles.

Unanswered Questions and Strategic Context

Whether the new U.S. order for GEM-T interceptors is entirely for American military use, or includes purchases on behalf of allies and partners, remains unclear.

GEM-T remains in active U.S. Army service and with other Patriot operators globally, even as newer PAC-3 interceptors have arrived. Current-generation trailer-mounted Patriot launchers can be loaded with mixtures of PAC-2 and PAC-3-series missiles simultaneously, increasing flexibility against different threats. PAC-2 missiles are distinctly larger than PAC-3 types.

Congressional Scrutiny

Members of the House Armed Services Committee questioned the logic of the Army's procurement strategy as recently as June, in a report accompanying a draft of the Fiscal Year 2027 National Defense Authorization Act.

"The committee supports the Army's continued investment in Integrated Air and Missile Defense (IAMD) to address the spectrum of current and future aerial threats and notes the ongoing efforts to address munitions production capacity within the domestic defense industrial base," the report stated. "The committee further notes that the Army's procurement of Patriot interceptors in recent budget requests has been for the Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE), and not for the PAC-2 Guided Enhanced Missile-Tactical (GEM-T)."

For a detailed breakdown of the PAC-2 lineage and the separate PAC-3 series, see previous TWZ coverage.