The Pentagon has handed Leidos another major check. The Reston, Virginia-based defense contractor announced Thursday it received a $617 million contract from the U.S. Army to build and deliver additional launchers for its Indirect Fire Protection Capability Increment 2, or IFPC Inc 2, air defense system.
The award comes as the U.S. government pushes to ramp up defense production, with global conflicts draining missile and munitions stockpiles at a pace that has put pressure on contractors to deliver.
Leidos said the latest contract, when combined with awards received in July and September 2025, brings its total production contracts tied to the IFPC Inc 2 program to nearly $1.2 billion. That’s a substantial run of business for a single platform in a relatively short window.
The IFPC Inc 2 is a mobile, ground-based system built to intercept cruise missiles and unmanned aerial threats. It’s the kind of hardware that’s become increasingly relevant as drone and missile attacks feature more prominently in modern conflict zones.
Leidos confirmed it has more than 100 launchers committed for delivery across its existing orders. The company did not specify a delivery timeline for the latest batch.
Beyond building launchers, the latest award also funds continued research, development, and testing. That R&D component is worth noting — it keeps the program’s momentum going and lays the groundwork for potential follow-on orders through 2029.
In a statement, Leidos linked the contract to its NorthStar 2030 strategy, which frames Air and Missile Defense work as a core focus area for the company going forward.
“The milestone and recent production contracts demonstrate the disciplined execution and readiness guiding its trusted Air and Missile Defense work,” the company said.
LDOS stock was down around 0.75% on Thursday, though the move appeared unrelated to the contract announcement and reflected broader market conditions rather than any negative reaction to the news.
The contract is the latest in a string of Pentagon awards flowing to established defense primes as the Department of Defense works to rebuild depleted inventories.
Leidos now holds one of the larger single-program backlogs in ground-based air defense, with $1.2 billion committed across three contract awards in under a year.
The potential for further orders through 2029 gives the program an extended runway, with ongoing R&D keeping Leidos positioned for incremental upgrades and additional production rounds.
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