ANJ, Sept. 22 – Lockheed Martin has secured a major US Army missile contract worth up to $1.2 billion to produce the Increment 2 variant of the Precision Strike Missile, known as PrSM. This Lockheed Martin US Army missile contract strengthens the defense contractor’s role in advancing long-range precision strike capabilities for American forces. Announced on September 21, 2026, the award positions Lockheed Martin to deliver advanced munitions designed to enhance operational flexibility on modern battlefields.
The Precision Strike Missile PrSM serves as the US Army’s next-generation long-range precision strike weapon, specifically engineered to replace the aging Army Tactical Missile System ATACMS. Lockheed Martin highlighted that the $1.2 billion contract follows a second successful flight test of the Increment 2 variant, which successfully demonstrated the missile’s capacity to engage moving maritime targets with high accuracy.
This Lockheed wins US Army missile contract comes as the company ramps up production of the Precision Strike Missile amid growing demand for long-range strike weapons. Earlier in March, Lockheed Martin signed a seven-year agreement with the US Department of War aimed at increasing annual production capacity to 550 missiles, building directly on a previous $4.94 billion Army contract awarded last year.
The weapon’s first combat use during Operation Epic Fury further underscores its proven effectiveness, supporting expanded manufacturing under the latest $1.2 billion Lockheed Martin Precision Strike Missile contract. Overall, this agreement reinforces Lockheed Martin’s commitment to delivering reliable, next-generation systems that meet evolving US Army requirements for precision and range.