US Army Awards Lockheed Martin $8.4 Billion to Ramp Up Precision Strike Missile Production
The U.S. Department of Defense announced on June 24, 2026 that it has awarded Lockheed Martin an $8.4 billion contract modification to dramatically expand production of the Precision Strike Missile (PrSM) through fiscal year 2032. The modification brings the cumulative value of contract W31P4Q-25-D-0010 to $13.3 billion, representing one of the largest single Army munitions commitments in recent history.
What’s Covered
Issued by Army Contracting Command at Redstone Arsenal, Alabama, the modification expands the ordering ceiling and extends the period of performance for PrSM Increment One production at Lockheed Martin’s Grand Prairie, Texas facility. The scope includes early operational capability assets, follow-on production lots, development activities, and obsolescence management — all running through September 30, 2032.
About the PrSM
The Precision Strike Missile is the U.S. Army’s next-generation long-range fires solution, designed to replace the legacy Army Tactical Missile System (ATACMS). Compatible with M142 HIMARS and M270 MLRS launchers already in the U.S. and allied inventories, PrSM can engage targets at ranges exceeding 500 kilometers — well beyond ATACMS’ practical range. The missile’s low radar cross-section and advanced guidance package make it effective against both maritime and land-based targets.
PrSM sits at the core of the Army’s Multi-Domain Operations doctrine, giving ground commanders a deep-strike option that can hold adversary vessels, logistics nodes, and command-and-control assets at risk without air support.
Production Scale-Up
Lockheed Martin has previously indicated plans to quadruple PrSM output from its Grand Prairie line. The new contract modification provides the long-term funding certainty the company needs to invest in additional production equipment and workforce. Beyond U.S. Army requirements, the expanded production base is expected to serve a growing foreign military sales pipeline — Australia, South Korea, and several European NATO members have signaled interest in the system.
Strategic Significance
The size of this commitment reflects Washington’s sustained investment in long-range precision fires as the primary tool for deterring both Russia in Europe and China in the Indo-Pacific. With PrSM providing a road-mobile, rapidly deployable strike option, the Army can threaten high-value targets from standoff distances that complicate adversary planning.
Sources: U.S. Department of Defense contract announcement, June 24, 2026; ExecutiveBiz; ClearanceJobs; Lockheed Martin press releases.
