Lockheed Martin Secures US Army Contract for Precision Strike Missiles Worth Up to $1.2 Billion

Lockheed Martin announced on Monday it has secured a U.S. Army contract with a potential value of up to $1.2 billion to produce its next-generation Precision Strike Missile (PrSM).

Contract Details

The award specifically covers the production of the PrSM's Increment 2 variant, according to the company's statement. This development follows a recent successful flight test where the missile demonstrated its enhanced capability to engage and destroy moving maritime targets.

The PrSM is a key component of the Army's modernization efforts, designed as a long-range, precision-strike weapon to replace the aging Army Tactical Missile System (ATACMS). This contract award signifies a major step in advancing the Army's surface-to-surface fire capabilities.

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Production Ramp-Up

This contract is part of a broader push by Lockheed Martin to increase manufacturing output amid growing demand for advanced, long-range munitions. The award builds on previous agreements intended to scale up PrSM production.

Reuters previously reported that the defense firm signed a seven-year agreement in March to increase its annual production capacity to 550 missiles. That deal followed a separate $4.94 billion Army contract awarded in the prior year, underscoring the strategic importance of the weapons system.