US Air Force, Navy seek $1.3b to buy secret Lockheed missile: report

Months after Pakistan downed Indian fighter jets with a Chinese long-range missile, the US is seeking advanced weapon of Lockheed Martin AIM-260 after eight years of development, according to a media report

US budget documents and official statements showed that the US Air Force and Navy have requested nearly $1 billion for the 2026 fiscal year to start production of the Lockheed Martin AIM-260 or Joint Advanced Tactical Missile.

The Air Force, which is spearheading the programme, has allocated US$368 million for initial manufacturing and an additional US$300 million through an “Unfunded Priorities List” submitted to congressional defence panels. Meanwhile, the Navy has asked for US$301 million for the same purpose.

Industry analysts believe the AIM-260 could evolve into a US$30 billion programme depending on production volumes. The development comes at a crucial time for Lockheed Martin, which recently reported a challenging second quarter with US$1.6 billion in charges and a potential US$4.6 billion tax-related liability.

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For the defence contractor, the missile programme is seen as a critical growth driver.

With its flagship F-35 fighter jet already at peak production and recent high-profile losses to competitors such as Boeing, Lockheed is banking on its Missiles and Fire Control division to deliver strong margins.

“It is Lockheed’s highest-margin segment and should be its fastest-growing segment due to the strong domestic and international demand,” said Melius Research analyst Scott Mikus.