The US Army has awarded Lockheed Martin an $8.4-billion contract modification to boost production capacity for the Precision Strike Missile Increment 1 program.
The US Army has awarded Lockheed Martin an $8.4-billion contract modification to boost production capacity for the Precision Strike Missile (PrSM) Increment 1 program.
The modification increases the contract’s total value to approximately $13.33 billion and extends the ordering period through September 30, 2032, supporting expanded production and procurement activities for the PrSM program.
It also covers procurement of Early Operational Capability assets, follow-on production, development, and obsolescence management.
Precise Deep Strike
The PrSM was made to replace legacy systems such as the aging MGM‑140 Army Tactical Missile System.
Fired from ground launchers like the M142 High Mobility Artillery Rocket System (HIMARS) and the M270A2 Multiple Launch Rocket System (MLRS), the missile can reach ranges of 400 to 500 kilometers (250 to 310 miles) to strike high-value land targets.
Increment 1 officially entered the production and deployment phase in July 2025, with Lockheed Martin planning to scale production to 400 units annually.
In March 2026, the PrSM was used in combat for the first time during the US-Israeli offensive against Iran, according to the US Central Command.
In the same month, Increment 2 completed its first flight test from a HIMARS platform.
