US Army Contracts Lockheed Martin for Precision Strike Missile Production

Lockheed Martin has signed a new framework agreement with the US Department of War to accelerate production of the Precision Strike Missile (PrSM), a move that could quadruple manufacturing capacity for the US Army’s next-generation long-range surface-to-surface missile. The company has invested over $7 billion in expanding capacity for priority systems, including munitions production. The agreement builds on a March 2025 US Army contract worth up to $4.9 billion for additional PrSM production. The program is designed for launch from both the M142 HIMARS and M270 family of launchers. Lockheed Martin said the arrangement is intended to expand capacity and could eventually support a multiyear contract of up to seven years, subject to congressional authorization. The company’s announcement comes weeks after the US Central Command said PrSM had been used in combat for the first time during Operation Epic Fury, marking the missile’s operational debut. The production push follows the program’s completion of Milestone C on July 2, 2025, and Initial Operational Test and Evaluation at White Sands Missile Range in September 2025. The US Army is also developing future PrSM increments, including an Increment 2 variant intended to add a multimode seeker for moving and maritime targets. Lockheed Martin’s expansion of PrSM production may also be linked to its efforts to double HIMARS launcher production and raise Javelin output.