Lockheed Martin Awarded $1.2 Billion Army Contract For PrSM Missiles

The United States Army awarded Lockheed Martin an indefinite-delivery, indefinite-quantity contract valued at up to $1.2 billion for Precision Strike Missile Increment 2 production. The agreement covers initial and follow-on missile orders, continued development, and early operational capability rounds, with work scheduled through September 2031. PrSM Increment 2 adds a multimode seeker for engaging moving maritime and relocatable land targets. The award follows fiscal 2026 flight tests, including an August launch from HIMARS that demonstrated protective-cover deployment and target engagement; further flight tests are planned for 2027 as initial production begins.