Leidos to build initial 3,000 low-cost containerized munitions through Department of War framework agreement

Rhea-AI Summary

Leidos (NYSE: LDOS) will build an initial 3,000 Low-Cost Containerized Munitions (LCCM) under a Department of War framework agreement supporting the “Arsenal of Freedom” initiative. The company-funded program will expand facilities in Huntsville, Alabama, and McEwen, Tennessee, with production expected to begin in 2027.

The LCCM, about twice the size of the AGM-190A Small Cruise Missile, uses a modular airframe and Weapon Open Systems Architecture to support rapid upgrades, mission adaptability, and potential maritime and air-launched variants.

AI-generated analysis. Not financial advice.

Positive

• Initial framework to deliver 3,000 LCCM cruise missiles
• Company-funded development leverages existing AGM-190A SCM technologies
• Planned production start in 2027 underpins future revenue visibility
• Facility and workforce expansion in Huntsville, AL and McEwen, TN
• Modular, open-architecture design supports upgrades and new platform variants

Negative

• Development costs are company-funded rather than customer-funded
• LCCM production is not expected to begin until 2027

News Market Reaction – LDOS

-3.29%

1 alert

-3.29% News Effect

On the day this news was published, LDOS declined 3.29%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Initial LCCM units: 3,000 munitions Production start: 2027 NorthStar horizon year: 2030

3 metrics

Initial LCCM units 3,000 munitions Initial Low-Cost Containerized Munitions through Department of War framework

Production start 2027 Full LCCM system design, development and test leading to production

NorthStar horizon year 2030 Aligned with Leidos’ NorthStar 2030 strategy

Market Reality Check

Price: $124.17 Vol: Volume 1,990,481 vs 20-da...

high vol

$124.17 Last Close

Volume Volume 1,990,481 vs 20-day average 1,231,568 (relative volume 1.62). high

Technical Shares at 128.39, trading below 200-day MA of 178.02 and well under 52-week high of 205.77.

Peers on Argus

LDOS is up 0.56% while key peers GIB, CDW, BR, WIT and CTSH show negative moves ...

LDOS is up 0.56% while key peers GIB, CDW, BR, WIT and CTSH show negative moves (e.g., CDW -3.97%, CTSH -3.90%), indicating a stock-specific reaction to defense news rather than a sector-wide move.

Historical Context

5 past events · Latest: May 12 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
May 12	Hypersonic weapons contract	Positive	+0.6%	Won $2.7B U.S. Army contract unifying key hypersonic programs.
May 05	Earnings and guidance	Positive	-7.8%	Reported strong Q1 with guidance raise and Entrust acquisition completion.
May 01	Dividend declaration	Neutral	-0.3%	Declared quarterly cash dividend of $0.43 per share for June 30 payout.
Apr 30	AI decision contract	Positive	+2.3%	Secured five-year, $869M MACRO II AI-driven Army modernization contract.
Apr 29	Military OneSource award	Positive	-0.2%	Won $456M contract to support over 4.7M service members and families.

Pattern Detected

Recent large contract and strategic wins often saw modest or mixed price reactions, including one notable selloff on strong earnings.

Recent Company History

Over the past few weeks, Leidos reported multiple contract and financial milestones. On Apr 29, it won a $456M Military OneSource contract, followed by an $869M MACRO II Army AI contract on Apr 30. Q1 2026 results on May 5 showed $4.40B revenue and raised guidance but were followed by a price decline. On May 12, a $2.7B hypersonic weapons contract coincided with a mild gain. Today’s LCCM framework agreement fits this pattern of expanding defense work and NorthStar 2030-aligned capabilities.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2026-02-19

The company has an effective Form S-3ASR shelf registration filed on 2026-02-19, covering multiple security types, with proceeds earmarked for general corporate purposes such as working capital, acquisitions and debt retirement. The shelf has been used in 2 recent 424B2 offerings.

Market Pulse Summary

This announcement adds another defense-focused milestone for Leidos, with an initial build of 3,000 ...

Analysis

This announcement adds another defense-focused milestone for Leidos, with an initial build of 3,000 Low-Cost Containerized Munitions under a Department of War framework and production targeted for 2027. It reinforces the NorthStar 2030 strategy and builds on existing missile and hypersonic work. In context of recent multibillion-dollar and hundreds‑of‑millions contracts, investors may watch future disclosures on contract value, margin profile, and how quickly this program scales within the broader backlog.

Key Terms

low-cost containerized munitions, small cruise missile, weapon open systems architecture, common hypersonic glide body

4 terms

low-cost containerized munitions technical

"receive an initial 3,000 Leidos (NYSE: LDOS) Low-Cost Containerized Munitions (LCCM)"

Low-cost containerized munitions are weapons or explosive payloads designed to be inexpensive to produce and packaged in standardized, transportable containers or modular units for easy storage, movement, and rapid deployment. For investors, this matters because lower unit cost and simplified logistics can make suppliers more competitive for military procurement, improve production margins, and create steady demand from bulk or repeat contracts—similar to how mass-produced, palletized goods cut costs and speed delivery in commercial supply chains.

small cruise missile technical

"technologies in its AGM-190A Small Cruise Missile (SCM) program."

A small cruise missile is a compact, self-powered, guided flying weapon that travels low and along a planned route to strike a specific target with high accuracy — think of it as a long-range, armed autonomous drone designed to hit precise locations. For investors, its development, production and export can drive sales and recurring support contracts for defense suppliers, while also raising regulatory, geopolitical and supply-chain risks that can affect valuations and government spending forecasts.

weapon open systems architecture technical

"including a modular airframe and a common Weapon Open Systems Architecture (WOSA)"

A weapon open systems architecture is a design approach for military weapon systems that uses common standards and plug-and-play interfaces so parts and software from different suppliers can work together like interchangeable pieces of a puzzle. For investors, it matters because it lowers long-term costs, speeds upgrades, reduces reliance on a single vendor, and creates ongoing opportunities for multiple suppliers and service contracts throughout a system’s life.

common hypersonic glide body technical

"through its work on the Common Hypersonic Glide Body."

A common hypersonic glide body is a standardized, unpowered vehicle that is boosted into the upper atmosphere by a rocket and then glides back through the air at speeds many times faster than sound toward a target; think of it like a skipping stone carried high and then skimming down at extreme speed. Investors care because such systems drive defense spending, create demand for specialized suppliers, trigger export and regulatory controls, and can change geopolitical risk that affects markets and company valuations.

AI-generated analysis. Not financial advice.

RESTON, Va., May 13, 2026 /PRNewswire/ -- America's warfighters will receive an initial 3,000 Leidos (NYSE: LDOS) Low-Cost Containerized Munitions (LCCM) through a framework agreement with the Department of War that advances President Donald J. Trump and Secretary of War Pete Hegseth's "Arsenal of Freedom" initiative.

The new cruise missile is expected to significantly enhance the country's ground-launched combat capability, demonstrating Leidos' ability to rapidly scale defense production and deliver decisive capabilities to the U.S. military.

Leidos will expand its workforce and enhance its facilities in Huntsville, Alabama, and McEwen, Tennessee, to produce the LCCM. Consistent with the DoW's desire to utilize commercial products, development of Leidos' LCCM is company-funded, leveraging the technologies in its AGM-190A Small Cruise Missile (SCM) program.

"We're answering the Department of War's call to revolutionize the procurement of critical capabilities at scale, with a focus on speed to operational capability," said Leidos Chief Executive Officer Tom Bell. "This agreement reflects the department's appreciation of Leidos' defense tech prowess and their trust in our proven history in delivering advanced missile technologies."

Leidos started LCCM work in December, reaching a conceptual design with the Pentagon that is capable of achieving all mission objectives. Full system design, development and test will result in production beginning in 2027.

At approximately twice the size of the AGM-190A, the LCCM offers increased mission effectiveness and fuel capacity to maximize range. Building on the Leidos Small Cruise Missile's heritage, the LCCM leverages key design features including a modular airframe and a common Weapon Open Systems Architecture (WOSA) to enable rapid integration, upgrades and mission adaptability. The design also utilizes Leidos' established supply chain and scalable production approach. 

While initially ground-launched, LCCM's modular design could also support maritime platform integration and air-launched variants.

Leidos' decision to fund development and expand its production capabilities reflects its commitment to advancing operational capabilities through its NorthStar 2030 strategy. 

Leidos is a proven leader in the design, development and integration of advanced missile systems, launchers and precision strike technologies for the U.S. military. In addition to the AGM-190A, Leidos is the prime contractor for the U.S. Army's Enduring Shield (Indirect Fire Protection Capability) launcher and supports next-generation hypersonic strike capabilities through its work on the Common Hypersonic Glide Body. The company also delivers precision munitions integration and advanced guidance and sensor technologies that strengthen integrated air and missile defense architectures.

About Leidos

Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquartered in Reston, Virginia, with 50,000 global employees, Leidos reported annual revenues of approximately $17.2 billion for the fiscal year ended January 2, 2026. For more information, visit www.leidos.com.  

Certain statements in this announcement constitute "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management's current beliefs and expectations and are subject to significant risks and uncertainties. These statements are not guarantees of future results or occurrences. A number of factors could cause our actual results, performance, achievements, or industry results to be different from the results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the "Risk Factors" set forth in Leidos' Annual Report on Form 10-K for the fiscal year ended January 2, 2026, and other such filings that Leidos makes with the SEC from time to time. Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Leidos does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.

Media Contact:

Philip Carder
(571) 926-6698 
philip.carder@leidos.com

 

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SOURCE Leidos Holdings, Inc.

FAQ

What did Leidos (LDOS) announce about Low-Cost Containerized Munitions on May 13, 2026?

Leidos announced an initial build of 3,000 Low-Cost Containerized Munitions under a Department of War framework agreement. According to Leidos, the company-funded LCCM program supports the “Arsenal of Freedom” initiative and leverages technologies from its AGM-190A Small Cruise Missile program.

How many Low-Cost Containerized Munitions will Leidos (LDOS) produce initially under the Department of War framework?

Leidos plans to deliver an initial 3,000 Low-Cost Containerized Munitions through the framework agreement. According to Leidos, these ground-launched cruise missiles are expected to enhance U.S. combat capability and demonstrate the company’s ability to rapidly scale defense production for the military.

When is Leidos (LDOS) expected to begin LCCM production for the Department of War?

Leidos expects LCCM production to begin in 2027 after full system design, development, and testing. According to Leidos, conceptual design work with the Pentagon began in December and achieved a design capable of meeting all stated mission objectives before moving toward production.

How will the LCCM program affect Leidos facilities and workforce in Huntsville and McEwen?

Leidos plans to expand its workforce and enhance facilities in Huntsville, Alabama, and McEwen, Tennessee, to produce LCCM. According to Leidos, these investments support scalable production using an established supply chain and reinforce the company’s NorthStar 2030 strategy for advanced defense capabilities.

What are the key design features of Leidos’ Low-Cost Containerized Munitions (LCCM)?

The LCCM is about twice the size of the AGM-190A and uses a modular airframe and Weapon Open Systems Architecture. According to Leidos, this design maximizes range, enables rapid integration and upgrades, and could support maritime and air-launched variants beyond the initial ground-launched configuration.

How does the LCCM program align with Leidos’ NorthStar 2030 strategy and LDOS investors?

Leidos describes the company-funded LCCM and production expansion as part of its NorthStar 2030 strategy to advance operational capabilities. According to Leidos, the program builds on its role in systems like Enduring Shield and hypersonic technologies, reinforcing its position in precision strike and missile defense.