The US Army has issued an $8.4 billion contract modification to Lockheed Martin to expand manufacturing capacity for the Precision Strike Missile (PrSM) Increment 1 program. The adjustment raises the overall contract value to approximately $13.33 billion and extends the ordering period through September 2032, supporting increased production and procurement efforts.
The updated agreement includes funding for Early Operational Capability assets, continued production, system development, and lifecycle support activities such as obsolescence management. Developed as the successor to the aging ATACMS missile, the PrSM is launched from platforms such as the M142 HIMARS and M270A2 MLRS. The missile is capable of engaging high-value targets at ranges between 400 and 500 kilometers. Increment 1 entered full-rate production and deployment in July 2025, with annual output expected to reach 400 missiles. In March 2026, the weapon reportedly saw its first combat use during US-Israeli operations against Iran, while Increment 2 successfully completed its inaugural flight test from a HIMARS launcher during the same month.
