Lockheed Martin wins $1.2 billion US Army PrSM contract

Lockheed Martin has secured a US Army contract valued at up to $1.2 billion for the production of the Precision Strike Missile (PrSM) Increment 2 configuration. The contract is structured as an Indefinite Delivery, Indefinite Quantity (IDIQ) agreement, covering initial production, subsequent orders, and further development work.

Designed to succeed the legacy Army Tactical Missile System (ATACMS), the PrSM Increment 2 features an improved multi-mode seeker head. This enhancement allows the missile to detect and track mobile land-based targets and engage maritime threats from land-based launch platforms, such as the M142 HIMARS and the M270 Multiple Launch Rocket System. The PrSM offers a range of approximately 500 kilometers, exceeding the 300-kilometer range of the ATACMS.

The US Army aims to transition from limited early production to a larger manufacturing base to ensure sufficient stockpiles for prolonged campaigns. Following successful flight tests in early 2026, the company anticipates further flight testing milestones in 2027 as it moves toward full-scale series production.