Lockheed Martin Wins $1.2 Billion Army Missile Contract

The United States Army awarded Lockheed Martin a contract worth up to $1.21 billion for the production and development of the Precision Strike Missile (PrSM) Increment 2. The agreement, structured as an indefinite-delivery/indefinite-quantity contract, focuses on Early Operational Capability and is scheduled for completion by September 13, 2031.

This award follows a second flight test in August 2026, where the missile successfully engaged moving maritime targets after launching from a High Mobility Artillery Rocket System. Increment 2 introduces a multimode seeker that enables the missile to target moving land and maritime targets, expanding the Army's long-range precision fires capability.

Lockheed Martin is now transitioning the system from development and testing into production while expanding its capacity to quadruple overall PrSM production. Further flight tests are scheduled for 2027. Dave Griser, Vice President of Precision Fires Launchers and Missile at Lockheed Martin, stated that the award is an important step in delivering the system to the warfighter.