US Army awards Lockheed Martin $1.2 billion contract for Precision Strike Missile
News, US September 23, 2026 Comments Off on US Army awards Lockheed Martin $1.2 billion contract for Precision Strike Missile3 minute read
The U.S. Army has awarded Lockheed Martin an indefinite delivery, indefinite quantity (IDIQ) contract worth up to $1.2 billion for the production and continued development of the Precision Strike Missile (PrSM) Increment 2.
The award follows a second flight test of the missile in August, during which PrSM Increment 2 demonstrated its ability to engage a moving maritime target. The contract moves the missile from development and flight testing toward initial production.
The IDIQ contract covers the initial procurement of PrSM Increment 2 missiles, future orders, follow-on production and continued development of the system. Work will be carried out at Lockheed Martin facilities and across the company’s U.S. industrial base.
The contract gives the Army a framework for ordering additional missiles as the program moves forward, while Lockheed Martin continues testing and further development of the system.
“This award marks an important step in delivering PrSM Increment 2 to the warfighter,” said Dave Griser, vice president of Precision Fires Launchers and Missile at Lockheed Martin. “We’re ready to move from flight testing into production and provide the Army with an expanded long-range precision fires capability.”
Second Flight Test
PrSM Increment 2 completed its first flight test in March and its second in August. During the second test, the missile was launched from a High Mobility Artillery Rocket System (HIMARS) and collected flight data before engaging a moving maritime target.
The test also involved the deployment of protective covers during flight and provided additional data on the missile’s guidance and overall performance.

The results are important for Increment 2 because the variant is being developed with a multimode seeker intended to allow the missile to engage both moving land and maritime targets.
Multimode Seeker Expands Target Options
The main difference between PrSM Increment 2 and earlier versions is the addition of a multimode seeker.
The seeker is designed to help the missile identify and engage moving targets, including targets at sea. This expands the types of targets the Army can potentially engage with the PrSM family beyond fixed land targets.
The capability is part of the Army’s broader effort to develop long-range precision fires that can operate against different types of targets and across changing battlefield conditions.
Technologies developed through Lockheed Martin’s Strigo family of solutions have also informed aspects of the PrSM Increment 2 guidance package.
PrSM Production Is Expanding
The new contract comes as Lockheed Martin expands its PrSM production capacity. The company is working to quadruple overall PrSM production while continuing development of additional missile increments.
The expansion is intended to support growing Army procurement requirements as the program moves from development toward larger-scale production.
The PrSM program is designed as a next-generation long-range precision fires system for the United States Army.
It is launched from existing systems such as HIMARS and the M270 Multiple Launch Rocket System, allowing the Army to use established launch platforms while introducing a new missile.
The Increment 2 award therefore represents another stage in the wider development of the PrSM family, with production beginning while flight testing and system development continue.
Further Testing Planned
Lockheed Martin will begin producing the initial Increment 2 missiles under the new contract while continuing flight tests and system maturation.
Further testing planned for 2027 will provide additional data on the missile’s performance and its ability to engage different types of targets.
As testing progresses, the Army is expected to continue evaluating the Increment 2 capability before moving toward larger procurement quantities.
The $1.2 billion contract gives the program a path from development and testing into production, while the addition of a multimode seeker broadens the intended role of PrSM to include moving land and maritime targets.






















