Lockheed Martin Secures $4.9B Deal to Deliver Precision Strike Missile to Army

Lockheed Martin has been awarded a $4.9 billion contract to deliver its advanced long-range Precision Strike Missile (PrSM) under Increment One.

The contract, announced in a March 28 notice, follows a competitive solicitation process, with only one bid submitted for the milestone project. This award marks an important phase in the ongoing development and deployment of next-generation missile systems designed to enhance the Army’s ability to neutralize advanced threats across various domains.

The Precision Strike Missile and Its Development History

The Precision Strike Missile (PrSM) is a state-of-the-art surface-to-surface weapon designed by Lockheed Martin to meet the evolving operational needs of the US military.

Built to replace the Army Tactical Missile System (ATACMS), the PrSM is engineered to provide increased strike capabilities, precision targeting, and the flexibility to engage a broad range of targets, including advanced and time-sensitive threats.

The missile system first gained attention due to its extensive development history, marked by successful testing and several critical milestones.

In mid-2024, the PrSM underwent a live-fire exercise where it successfully engaged a moving maritime target using an autonomous multi-domain launcher. This demonstration confirmed the missile’s operational capabilities in challenging, dynamic environments.

The missile’s development also reached a significant milestone in 2023 when it completed a production qualification flight test in one of its most demanding operational environments. These achievements underscore the PrSM’s readiness and its potential to enhance the Army’s long-range precision strike capabilities.

Contract Details and Increment One

The contract awarded to Lockheed Martin is for Increment One of the PrSM program, which is expected to be completed by March 2030.

Under this phase, Lockheed Martin will continue to refine and deliver the missile to the US Army.

The awarded contract will support further testing, production, and deployment of the PrSM, marking a critical step in integrating this advanced weapon into the Army’s arsenal.

The PrSM is designed with an operational range exceeding 499 kilometers (310 miles), making it one of the most potent long-range precision-guided munitions in the US military’s inventory.

.@LockheedMartin and the @USArmy successfully completed another Precision Strike Missile (PrSM) production qualification flight at Vandenberg Space Force Base in California showcasing its exceptional capability to meet mission requirements.

— Lockheed Martin News (@LMNews) March 26, 2025

The missile is capable of attacking, neutralizing, suppressing, and destroying both fixed and moving targets, including high-value and hard-to-reach threats.

It provides the Army with enhanced capabilities to conduct long-range strike operations, providing greater flexibility and precision in the field.

Key Technical Specifications and Launch Flexibility

One of the standout features of the PrSM is its launch flexibility.

The missile can be fired from both the M142 High Mobility Artillery Rocket System (HIMARS) and the M270A2 Multiple Launch Rocket System (MLRS). These launch platforms enhance the missile’s deployment flexibility and enable the Army to use it in a variety of operational scenarios.

The PrSM is also notable for its innovative two-missile launch pod, which provides increased strike capacity. This launch system offers greater efficiency and effectiveness, allowing the missile to deliver more firepower with fewer launch operations.

This capability is expected to provide a significant operational advantage, particularly in high-intensity combat scenarios where rapid, sustained strikes are essential.

While Increment One focuses on the current delivery of the missile, the US Army is already planning for the next phase of the PrSM program, referred to as Increment Two.

In May 2024, the Army released the requirements for Increment Two, which aims to further enhance the missile’s design and performance.

Key goals for this phase include a sleeker, more efficient design, improved velocity, and an increased magazine capacity—doubling the number of rounds per launcher.

Increment Two is expected to further improve the missile’s overall effectiveness, expanding its range, speed, and accuracy.

The upgraded PrSM will also be equipped with more advanced targeting capabilities, allowing it to engage a broader spectrum of high-priority targets. This next iteration of the missile will continue to be launched from the HIMARS and MLRS systems, ensuring continuity in operational readiness while enhancing overall strike capabilities.

Final Thoughts

The $4.9 billion contract awarded to Lockheed Martin for the Precision Strike Missile marks a major step forward in the US Army’s modernization efforts.

With its long range, flexible launch systems, and increasing effectiveness, the PrSM is set to become a cornerstone of the Army’s precision strike capabilities. As the missile continues to undergo rigorous testing and development, it is poised to enhance the US military’s ability to respond to a variety of threats with greater speed, precision, and impact.