Lockheed Martin wins US Army contract for Precision Strike Missile Increment 2

Key facts

• Lockheed Martin will produce the Increment 2 variant of the Precision Strike Missile (PrSM) for the US Army.
• The contract has a ceiling of up to $1.21 billion and runs through September 13, 2031.
• PrSM Increment 2 is designed to engage moving maritime and relocatable land targets.
• The missile integrates a combined passive radio frequency and imaging infrared terminal seeker.
• The PrSM is intended to replace the Army Tactical Missile System (ATACMS).

Lockheed Martin announced on Monday that it has been awarded a contract by the US Army for the production of the Increment 2 variant of its Precision Strike Missile (PrSM). The indefinite-delivery, indefinite-quantity contract has a ceiling of up to $1.21 billion and is set to run through September 13, 2031.

The PrSM Increment 2 is designed to engage moving maritime and relocatable land targets, integrating a combined passive radio frequency and imaging infrared terminal seeker. This variant is intended to replace the Army Tactical Missile System (ATACMS).

The award supports accelerated rapid fielding initiatives to expand deep-fires capabilities and replenish strategic inventories. Lockheed Martin is also increasing production of Increment 1 of the PrSM. The company previously signed a seven-year agreement to increase annual production capacity to 550 missiles, building on a $4.94 billion Army contract awarded last year.