Leidos has secured a $617 million follow-on contract from the U.S. Army to manufacture launchers for the Indirect Fire Protection Capability Increment 2 system. Bringing the total program commitment to nearly $1.2 billion, the award signals a shift toward full-rate production for critical ground-based defense infrastructure through 2029.
The U.S. Army has expanded its commitment to mobile air defense by awarding Leidos a $617 million contract to produce launchers for the Indirect Fire Protection Capability Increment 2 (IFPC Inc 2) system. This follow-on award, combined with approximately $356 million in funding granted earlier in the fiscal year, brings the total production commitment to nearly $1.2 billion. Headquartered in Reston, Virginia, Leidos is a Fortune 500 science and technology leader providing comprehensive services in defense, intelligence, civil, and health markets.
This significant capital injection marks a transition from development toward full-rate production, with more than 100 launchers currently scheduled for delivery. Official disclosures indicate the funding will also facilitate ongoing research and testing to support potential procurement cycles through 2029. The acceleration of the IFPC Inc 2 program follows the early delivery of initial test units, reflecting a streamlined execution of military modernization goals. For the defense industry, this development highlights the prioritization of ground-based systems capable of countering short-range ballistic threats and unmanned aerial vehicles.
The scale of the investment underscores a strategic shift toward fielding mobile defense capabilities at volume to protect critical infrastructure and personnel. For investors, the multi-year nature of these contracts provides Leidos with enhanced revenue visibility within its defense portfolio, aligning with the company’s long-term focus on advanced air and missile defense architecture. The continued integration of these systems into the broader defense network is expected to influence future procurement trends in the global aerospace and defense markets.
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