Lockheed Martin Corporation | Lockheed Martin

DALLAS, Sept. 21, 2026 /PRNewswire/ — In a significant development for the U.S. Army’s missile capabilities, Lockheed Martin (NYSE:LMT) has been awarded an indefinite delivery, indefinite quantity (IDIQ) contract valued at up to $1.2 billion to produce Increment 2 of the Precision Strike Missile (PrSM). This contract comes following the successful completion of a second flight test, which showcased the missile’s capability to engage moving maritime targets.

THE BIG PICTURE

• Contract: This IDIQ encompasses the initial procurement and future orders of the PrSM Increment 2 missiles, as well as follow-on production and continued development. The work associated with this contract will take place at Lockheed Martin facilities and across the company’s U.S. industrial base.
• Test: The PrSM Increment 2 conducted its first flight test in March, followed by a second flight test in August, which provided crucial data regarding the missile’s performance. The missile was launched from a High Mobility Artillery Rocket System (HIMARS), successfully deploying its protective covers and engaging its target. Key technologies from Lockheed Martin’s Strigo family of solutions were integrated into the guidance package of the PrSM Increment 2. Additional flight tests for this missile variant are scheduled for 2027.
• Investment: This award enhances the Department of War’s broader investment in the PrSM program. Lockheed Martin is ramping up its production capacity to increase PrSM output by four times while further developing additional increments of the missile.

WHY IT MATTERS

This contract propels PrSM Increment 2 from the development and testing phase into full production, significantly boosting the Army’s long-range precision fire capabilities. The introduction of a multimode seeker in Increment 2 enables the missile to target both moving land and maritime assets, thereby broadening the Army’s strategic strike options.

EXPERT PERSPECTIVE

• Dave Griser, vice president of Precision Fires Launchers and Missiles at Lockheed Martin, stated, “This award marks an important step in delivering PrSM Increment 2 to the warfighter. We’re ready to move from flight testing into production and provide the Army with an expanded long-range precision fires capability.”

ADDITIONAL CONTEXT

• What’s Next: Lockheed Martin will initiate production of the initial Increment 2 missiles while simultaneously continuing flight testing and system maturation. The company is well-prepared to scale production in accordance with the Army’s future procurement plans for Increment 2.

About Lockheed Martin
Lockheed Martin is a global defense technology enterprise committed to innovation and the advancement of scientific discovery. Our all-domain mission solutions and 21st Century Security® vision drive the acceleration of transformative technologies to maintain a strategic edge for those we serve. For more information, visit Lockheedmartin.com.

Source: Lockheed Martin (2026-09-21 21:39:00)