Lockheed Martin secures US$1.2B contract for PrSM Inc 2

The US Army has awarded Lockheed Martin an indefinite delivery, indefinite quantity (IDIQ) contract worth up to US$1.2 billion ($1.71 billion) to produce Increment 2 of the Precision Strike Missile (PrSM), after a second flight test demonstrated the missile’s ability to engage moving maritime targets. PrSM Increment 2 has a range of approximately 500km.

The IDIQ contract covers initial procurement and future orders of PrSM Increment 2 missiles, follow-on production and continued development. Work will be performed at Lockheed Martin facilities and across the company’s US industrial base.

The PrSM family may also eventually be built in Australia, whose government has teamed with the US Army to develop the PrSM family of weapons. Australia is already assembling another Lockheed Martin weapon, the Guided Multiple Launch Rocket System (GMLRS) at Port Wakefield and plans to establish an Australian Weapons Manufacturing Complex (AWMC) to assemble this and other weapons in due course.

PrSM Increment 2 completed its first flight test in March and its second flight test in August, obtaining critical data during flight, launching from a HIMARS, deploying protective covers and engaging the target. Technologies developed through Lockheed Martin’s Strigo family of solutions have informed aspects of the PrSM Increment 2 guidance package. Additional PrSM Increment 2 flight tests are scheduled for 2027.

This award builds on the Department of War’s broader investment in PrSM. Lockheed Martin is expanding capacity to quadruple PrSM production while continuing to develop additional PrSM increments.

The award moves PrSM Increment 2 from development and flight testing into production, advancing the Army’s next-generation long-range precision fires capability. Increment 2 adds a multimode seeker designed to enable the missile to engage moving land and maritime targets, expanding the Army’s long-range strike options.

In Australia PrSM Increment s 1 and 2 will arm the newly formed 10 Brigade’s 15^th Regiment and provide both long-range strike and a land-based anti-ship missile capability.

“This award marks an important step in delivering PrSM Increment 2 to the warfighter,” said Dave Griser, vice president, Precision Fires Launchers and Missile, Lockheed Martin. “We’re ready to move from flight testing into production and provide the Army with an expanded long-range precision fires capability.”

Lockheed Martin will begin production of the initial Increment 2 missiles while continuing flight testing and system maturation. The company is positioned to scale production as the Army moves toward larger Increment 2 procurements.