To accelerate the production of its next-generation long-range strike weapon, the US Army has awarded Lockheed Martin an $8.4 billion contract modification for the Precision Strike Missile (PrSM) Increment 1 program. The amendment increases the total contract value to roughly $13.33 billion and extends procurement authority through September 2032.
The expanded contract supports the acquisition of Early Operational Capability systems, ongoing missile production, further development work, and measures to address component obsolescence. Designed to replace the legacy ATACMS inventory, the PrSM can be fired from the M142 HIMARS and M270A2 MLRS, delivering precision strikes against high-priority targets at distances of up to 500 kilometers. Following its transition into the production and fielding phase in 2025, Lockheed Martin has been working toward an annual production rate of 400 missiles. The system was reportedly employed in combat for the first time in March 2026, and the more advanced Increment 2 variant achieved a successful first launch test from a HIMARS platform during the same period.
