US Army orders $1.2B precision strike missile upgrade that can hunt moving targets
Lockheed Martin has secured a U.S. Army contract worth up to $1.2 billion to produce...

Lockheed Martin has secured a U.S. Army contract worth up to $1.2 billion to produce the second increment of its Precision Strike Missile (PrSM), moving the weapon further from development and flight testing toward production.
The indefinite-delivery, indefinite-quantity (IDIQ) contract covers initial procurement and future orders of PrSM Increment 2, along with follow-on production and continued development. Work will be carried out at Lockheed Martin facilities and across its U.S. industrial base.
PrSM Increment 2 adds a moving-target capability
The new contract follows two flight tests of PrSM Increment 2, including a second test in August. The company says the tests have generated critical data for the missile’s development, including its ability to launch from the M142 High Mobility Artillery Rocket System (HIMARS), deploy protective covers, and engage targets during flight.
The most significant change in Increment 2 is its multimode seeker, which is designed to allow PrSM to engage moving targets on land and at sea. That expands the missile beyond the ability to strike fixed targets, giving the Army another option for attacking mobile targets at extended ranges.
Lockheed Martin says technologies developed through its Strigo family of solutions have informed aspects of the Increment 2 guidance package. Additional PrSM Increment 2 flight tests are scheduled for 2027 as the system continues to mature.
From development to production
The contract represents a shift for Increment 2 as the Army begins ordering the missile while testing continues. Lockheed Martin says it will begin producing the initial Increment 2 missiles while continuing flight testing and system maturation. The company is also expanding manufacturing capacity with the goal of quadrupling PrSM production as demand for the weapon grows.
The Army is developing PrSM as a next-generation long-range precision fires system. The missile is designed to be launched from existing Army launchers, including HIMARS and the M270 Multiple Launch Rocket System, providing a relatively mobile way to deliver long-range fires.
Increment 2’s multimode seeker is intended to broaden the types of targets the missile can engage, particularly moving land and maritime targets. The company did not disclose how many Increment 2 missiles are covered by the $1.2 billion ceiling, and the IDIQ structure means the maximum contract value does not necessarily represent an immediate purchase of that amount.
More PrSM increments are coming
PrSM is being developed through multiple increments rather than as a single fixed configuration. Lockheed Martin is continuing work on additional versions while increasing production of the baseline missile.
The Increment 2 contract therefore represents both a manufacturing milestone and another step in the Army’s effort to expand its long-range precision-strike capabilities. “We’re ready to move from flight testing into production,” said Dave Griser, vice president of Precision Fires Launchers and Missile at Lockheed Martin.
The initial Increment 2 missiles will now enter production while additional flight testing planned for 2027 provides more data for the system’s development. For the Army, the key change is the addition of a seeker designed to let a ground-launched missile find and engage moving targets, potentially including ships, at long range. The coming tests will help determine how the capability performs as PrSM Increment 2 moves toward wider fielding.
Source: https://interestingengineering.com/military/prsm-increment-2-lockheed-martin-1-2-billion-contract
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