LMT · News · 20260923N

Precision Strike Missile Contract

LOCKHEED MARTIN CORP · 2026-09-23 · Importance 65 · Surprise 60 · In source text

Lockheed Martin secured an indefinite-delivery, indefinite-quantity U.S. Army contract valued at up to $1.2 billion for production of Increment 2 Precision Strike Missiles (PrSM). The award followed a second successful flight test demonstrating the missile’s ability to engage moving maritime targets. Increment 2 includes a multimode seeker for land and maritime missions, and Lockheed is significantly expanding production capacity for the munitions.

Key facts

• LOCKHEED MARTIN CORP secured an indefinite delivery, indefinite quantity (IDIQ) U.S. Army contract worth up to $1.2 billion for the production of Increment 2 of the Precision Strike Missile (PrSM). source
• LOCKHEED MARTIN CORP is significantly expanding its production capacity for Precision Strike Missile munitions. source
• The Increment 2 Precision Strike Missile demonstrated in a successful second flight test the capability to engage moving maritime targets. source
• LOCKHEED MARTIN CORP's Increment 2 PrSM features a multimode seeker to enhance targeting of both land and maritime objects. source

Impact estimates