LMT · News · 20260921N

Precision Strike Missile Contract

LOCKHEED MARTIN CORP · 2026-09-21 · Importance 58 · Surprise 42 · In source text

The U.S. Army awarded Lockheed Martin an indefinite-delivery, indefinite-quantity contract valued at up to $1.2 billion for production, procurement and continued development of Precision Strike Missile (PrSM) Increment 2. The upgraded missile uses a multimode seeker to engage moving land and maritime targets, expanding the Army’s mission set after a second successful maritime flight test. Lockheed Martin plans to quadruple PrSM production while developing additional increments, supporting demand for precision-strike systems.

Key facts

• Lockheed Martin received an indefinite delivery, indefinite quantity (IDIQ) contract worth up to $1.2 billion to produce Increment 2 of the Precision Strike Missile (PrSM). source
• Lockheed Martin said it secured a contract worth up to $1.2 billion from the US Army to produce the Increment 2 variant of the Precision Strike Missile (PrSM). source
• Lockheed Martin plans to quadruple PrSM production and continue developing additional increments, according to a report summarizing the contract award. source
• The PrSM Increment 2 contract includes initial procurement, future orders, and continued development of the PrSM Increment 2, according to one report. source
• The PrSM Increment 2 contract award followed a second flight test that demonstrated the missile's ability to engage moving maritime targets. source
• The PrSM Increment 2 is described as featuring a multimode seeker for engaging moving land and maritime targets. source
• The U.S. Army awarded the PrSM Increment 2 contract to Lockheed Martin on or before Sept. 21, 2026 (press release dated DALLAS, Sept. 21, 2026). source

Impact estimates