Leidos announced Wednesday it will expand its Huntsville workforce and facilities as part of a new framework agreement with the Department of War to produce low-cost cruise missiles for the U.S. military.

Leidos is one of four defense contractors selected for the Low-Cost Containerized Missiles program, alongside Anduril, CoAspire and Zone 5. Together, the agreements are designed to deliver more than 10,000 low-cost cruise missiles over three years beginning in 2027. A separate agreement with Castelion advances a parallel hypersonic missile initiative.

Leidos will produce an initial 3,000 missiles, with expansion at its Huntsville and McEwen, Tennessee facilities. The company is funding development itself, building on technology from its existing AGM-190A Small Cruise Missile 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 capable of achieving all mission objectives. Full system design, development and test will result in production beginning in 2027.

The program is part of the Trump administration’s broader Arsenal of Freedom initiative to expand the U.S. munitions industrial base through commercial partnerships. Test missiles from all four contractors are expected to be procured beginning in June 2026, leading to a Military Utility Assessment before production contracts are finalized.

Leidos acquired Huntsville’s Dynetics in 2020.