US Army Awards Lockheed Martin $1.2 Billion Contract for PrSM Increment 2
The US Army has awarded Lockheed Martin an indefinite-delivery, indefinite-quantity (IDIQ) contract worth up to $1.2 billion for production of the Precision Strike Missile (PrSM) Increment 2. The award follows a fiscal year 2026 flight test campaign that validated the missile’s ability to strike moving maritime targets and relocatable land targets.
At a Glance
- Contract value: Up to $1.2 billion, IDIQ structure
- Contractor: Lockheed Martin Missiles and Fire Control, Grand Prairie, Texas
- Scope: Initial production, follow-on orders and continued development of PrSM Increment 2
- Range: Exceeding 310 miles (500 km)
- Launcher compatibility: HIMARS and M270
- New capability: Multi-mode seeker enabling strikes on moving maritime and relocatable land targets
Background
PrSM sits at the center of the US Army’s Long Range Precision Fires modernization priority, designed to replace the MGM-140 ATACMS missile. Increment 1, aimed at fixed land targets, has already been fielded to units. Increment 2 adds a multi-mode seeker that extends the missile’s reach to moving naval targets and relocatable land targets, positioning it for coastal defense and sea-denial missions.
The Army confirmed the maritime-strike capability was validated during the second maritime test of the FY2026 flight campaign. The contract covers the first production lot as well as future orders and continued development work, with manufacturing performed at Lockheed Martin’s Texas facility and across its broader US industrial base.
Regional Impact
Türkiye does not operate HIMARS or PrSM-class systems; instead, ROKETSAN has built a domestic long-range precision-strike capability with the TAYFUN and Bora missile families, occupying a broadly comparable range and precision class. PrSM Increment 2’s emphasis on multi-mode seekers and moving-target engagement reflects a wider NATO trend of extending long-range precision fires from land targets into the maritime domain — an area Turkish planners are also tracking as TAYFUN’s anti-ship potential and future missile programs evolve. Any future US decisions on allied PrSM sales could also shift the precision-fires balance on NATO’s eastern flank.
FAQ
What separates Increment 2 from Increment 1? Increment 1 targets fixed land assets; Increment 2 adds a multi-mode seeker for moving maritime and relocatable land targets.
What is the missile’s range? The Army states it exceeds 310 miles (500 km); the exact figure is not public.
When will deliveries be completed? The IDIQ structure allows for the initial lot plus additional orders in coming years; no fixed delivery schedule has been announced.
