Lockheed Martin awarded missile contract worth up to $1.2B

Lockheed Martin announced Monday that it had received a contract worth up to $1.2 billion from the US Army to produce the Increment 2 variant of its Precision Strike Missile (PrSM).

The PrSM is the Army's next-generation long-range precision strike weapon and is intended to replace the Army Tactical Missile System (ATACMS).

According to Lockheed Martin, the contract comes after the successful second flight test of the PrSM Increment 2 variant. The test demonstrated the missile's ability to detect and strike moving maritime targets.

"This award marks an important step in delivering PrSM Increment 2 to the warfighter," said Dave Griser, vice president, Precision Fires Launchers and Missile, Lockheed Martin. "We're ready to move from flight testing into production and provide the Army with an expanded long-range precision fires capability."

The company said it will begin production of the initial Increment 2 missiles while continuing flight testing and system maturation. The move positions the company to scale production as the Army transitions toward larger Increment 2 procurements.