Lockheed Martin Lands $1.2B Army Contract for Advanced Precision Strike Missile
Event summary
- Lockheed Martin secured a $1.2B IDIQ contract for PrSM Increment 2 production after successful maritime target tests.
- PrSM Increment 2 features a multimode seeker for engaging moving land and maritime targets.
- The contract covers initial procurement, follow-on production, and continued development.
- Lockheed Martin is expanding capacity to quadruple PrSM production.
- Additional flight tests for PrSM Increment 2 are scheduled for 2027.
The big picture
The $1.2B contract marks a significant step in the U.S. Army's modernization of long-range precision strike capabilities. PrSM Increment 2's ability to engage moving maritime targets expands the Army's strike options, aligning with broader defense strategies to counter evolving threats. Lockheed Martin's expanded production capacity positions the company to capitalize on growing demand for advanced missile systems.
What we're watching
- Production Scaling
- Whether Lockheed Martin can successfully quadruple PrSM production while maintaining quality and delivery timelines.
- Technical Maturation
- The pace at which PrSM Increment 2 completes remaining flight tests and achieves full operational capability.
- Market Positioning
- How this contract positions Lockheed Martin against competitors in the long-range precision fires market.
Related topics