Lockheed Martin awarded $1.2B U.S. Army contract for Precision Strike Missile

The U.S. Army has awarded Lockheed Martin an indefinite delivery, indefinite quantity (IDIQ) contract valued at up to $1.2 billion for the production of Precision Strike Missile (PrSM) Increment 2. This contract transitions the missile from the development and testing phase into active production.

PrSM Increment 2 features a multimode seeker designed to engage both moving land and maritime targets. The decision follows two successful flight tests conducted in March and August, which demonstrated the missile's ability to engage moving maritime targets and provided critical flight data.

Lockheed Martin is expected to expand its production capacity to quadruple PrSM output as part of a broader investment in the program. The contract covers initial procurement, future orders, follow-on production, and continued development, with work being carried out across the company’s U.S. industrial base. Additional flight tests are scheduled for 2027.