Lockheed Martin Secures $1.2B Contract for Precision Strike Missile Increment 2 After Second Maritime Test
A new U.S. Army IDIQ contract advances PrSM Increment 2 from testing into production, supporting future long-range precision strike capacity.
Rhea-AI Summary
Lockheed Martin (LMT) received an indefinite delivery, indefinite quantity contract worth up to $1.2 billion from the U.S. Army to produce Precision Strike Missile (PrSM) Increment 2, following a second successful maritime flight test.
The IDIQ covers initial procurement, future orders, follow-on production and continued development, with work performed at Lockheed Martin facilities and across its U.S. industrial base. PrSM Increment 2 completed flight tests in March and August, engaging moving maritime targets and collecting critical flight data. The award moves Increment 2 from development and testing into production and supports the Army’s next-generation long-range precision fires capability, including a multimode seeker for moving land and maritime targets. Additional flight tests are scheduled for 2027.
Positive
- U.S. Army IDIQ contract worth up to $1.2 billion for PrSM Increment 2
- PrSM production capacity targeted to be quadrupled under broader program investment
Negative
- None.
AI-generated analysis. How Rhea-AI works. Not financial advice.
New PrSM demonstrates moving target engagement expanding the
THE BIG PICTURE
- Contract: The IDIQ 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
U.S . industrial base. - Test: 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.
- Investment: 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.
WHY IT MATTERS
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.
EXPERT PERSPECTIVE
- "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."
ADDITIONAL CONTEXT
- What's Next: 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.
About Lockheed Martin
Lockheed Martin is a global defense technology company driving innovation and advancing scientific discovery. Our all-domain mission solutions and 21st Century Security® vision accelerate the delivery of transformative technologies to ensure those we serve always stay ahead of ready. More information at Lockheedmartin.com.
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SOURCE Lockheed Martin
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What does the PrSM Increment 2 IDIQ contract include for Lockheed Martin?
The IDIQ contract for PrSM Increment 2 includes initial procurement and future orders of missiles, follow-on production and continued development work. Activities will take place at Lockheed Martin facilities and across the company’s U.S. industrial base.
What recent testing has PrSM Increment 2 completed?
PrSM Increment 2 completed its first flight test in March and a second in August, launching from a HIMARS, deploying protective covers, engaging a moving maritime target and collecting critical in-flight data.
How does Increment 2 change the missile’s capabilities for the U.S. Army?
Increment 2 adds a multimode seeker designed to engage moving land and maritime targets, which the company says expands the Army’s long-range precision strike options and advances its next-generation long-range precision fires capability.
What are the next steps for PrSM Increment 2 after this award?
Lockheed Martin will begin production of the initial Increment 2 missiles while continuing flight testing and system maturation, and states it is positioned to scale production as the Army moves toward larger Increment 2 procurements. Additional flight tests are scheduled for 2027.
What role do Strigo family technologies play in PrSM Increment 2?
Technologies developed through Lockheed Martin’s Strigo family of solutions have informed aspects of the PrSM Increment 2 guidance package, contributing to its ability to engage moving targets.