Lockheed Martin Wins US Army Contract Worth Up to $1.2 Billion for PrSM Increment 2

Lockheed Martin said on September 21, 2026, it secured a U.S. Army contract worth up to $1.2 billion to produce the Increment 2 variant of the Precision Strike Missile (PrSM), the Army's next-generation long-range precision strike weapon designed to replace the Army Tactical Missile System (ATACMS). The award follows a second successful flight test of the Increment 2 variant, which demonstrated the missile's ability to engage moving maritime targets, Lockheed said. The contract comes as Lockheed ramps up PrSM production amid rising demand for long-range strike weapons. In March, the company signed a seven-year agreement with the U.S. Department of War to raise annual production capacity to 550 missiles, building on a $4.94 billion Army contract awarded last year and following the weapon's first combat use during Operation Epic Fury.