Lockheed Martin Wins $8.4 Billion Deal for PrSM, the Successor to ATACMS
The US Department of War has signed an $8.4 billion contract modification with Lockheed Martin to expand production of the Army’s new precision tactical missile, the PrSM (Precision Strike Missile). Announced on 1 July 2026, the deal boosts production capacity and extends ordering through fiscal year 2032.
Replacing ATACMS
PrSM was developed as the successor to the ATACMS tactical ballistic missile the US Army has fielded for decades. The Increment 1 variant formally entered production and deployment in July 2025. The missile fires from HIMARS and M270 multiple rocket launchers, and its key advantage is that a single launch pod holds two PrSM rounds against just one ATACMS, doubling fire volume from the same platform.
Range and capability
PrSM Increment 1 has a range exceeding 400 kilometres, with later variants planned to extend that reach and add an anti-ship capability. The missile is one of the US Army’s top modernisation priorities under Long-Range Precision Fires. The $8.4 billion contract shows the programme has moved into serial production and that stockpile depth is set to grow substantially.
Strategic context
Long-range ground-based precision missiles have become central to deterrence in the Indo-Pacific and Europe. The US is rapidly deepening its ground-launched missile force against Chinese and Russian anti-access/area-denial (A2/AD) capabilities. That context aligns with Germany’s same-day request to license Tomahawk production: allies are racing to make long-range conventional fires a permanent part of their own inventories.
Ground-based ballistic missiles such as Turkey’s ROKETSAN-developed TAYFUN are part of the same global trend. PrSM’s move into serial production shows how competitive this segment will be over the coming decade.
Sources: US Department of War contract notice, Lockheed Martin, Overt Defense.
