Lockheed Martin wins $1.2B PrSM Increment 2 contract after second at-sea test

The U.S. Army has awarded Lockheed Martin an indefinite delivery, indefinite quantity contract worth up to $1.2 billion to produce Increment 2 of the Precision Strike Missile, moving the program into production after two recent flight tests, including one that demonstrated the missile’s ability to engage moving maritime targets.

The award covers initial procurement and future orders of PrSM Increment 2 missiles, follow-on production, and continued development. Work will be performed at Lockheed Martin facilities and across the company’s U.S. industrial base.

Increment 2 completed its first flight test in March and a second in August, obtaining critical data during flight, launching from a HIMARS, deploying protective covers, and engaging the target. Technologies developed through Lockheed Martin’s Strigo family of solutions have informed aspects of the Increment 2 guidance package. Additional flight tests are scheduled for 2027.

The transition to production advances the Army’s next-generation long-range precision fires capability. Increment 2 adds a multimode seeker designed to enable the missile to engage moving land and maritime targets, expanding long-range strike options.

“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 award builds on the Department of War’s broader investment in PrSM. Lockheed Martin is expanding capacity to quadruple PrSM production while continuing to develop additional increments.

The company will begin production of the initial Increment 2 missiles while continuing flight testing and system maturation and is positioned to scale production as the Army moves toward larger procurements.