US Army Awards Lockheed Martin Up to $1.2B Contract for PrSM Increment 2 Production

Army Moves PrSM Increment 2 From Testing to Production

The U.S. Army awarded Lockheed Martin an indefinite-delivery, indefinite-quantity (IDIQ) contract valued at up to $1.2 billion to produce Increment 2 of the Precision Strike Missile (PrSM), covering initial procurement, future orders, follow-on production and continued development, according to a Lockheed Martin announcement. The company said work will be performed at Lockheed Martin facilities and across its U.S. industrial base, including sites in Texas and Maryland.

Multimode Seeker Adds Moving-Target and Maritime Capability

PrSM Increment 2 introduces a multimode seeker designed to lock onto moving targets on land and engage ships at sea, extending the missile beyond fixed-target strikes and giving land-based launchers a maritime strike option. The seeker draws on technologies from Lockheed Martin's Strigo family of solutions. Dave Griser, Lockheed Martin vice president for precision fires, said the award "marks an important step in delivering PrSM Increment 2 to the warfighter" and that the company is "ready to move from flight testing into production."

Flight Testing Milestones and 2027 Schedule

Increment 2 completed its first flight test in March and a second test in August, during which the missile launched from an M142 High Mobility Artillery Rocket System (HIMARS), deployed protective covers and engaged its target, Lockheed Martin said. Additional Increment 2 flight tests are scheduled for 2027 as the system continues to mature.

Platforms and Stated Replacement Role

PrSM is intended to replace the Army Tactical Missile System (ATACMS), first fielded in the early 1990s, and has a stated range of about 500 kilometers compared with roughly 300 kilometers for ATACMS. The missile can be launched from the HIMARS and the M270 Multiple Launch Rocket System.

Production Expansion Plan

Lockheed Martin said it is expanding capacity to quadruple PrSM production while continuing work on additional PrSM increments, positioning the company to scale output as the Army moves toward larger Increment 2 procurements. The contract builds on the Department of Defense's broader investment in ballistic missiles, according to the company.