Lockheed Martin is scaling production of the Precision Strike Missile (PrSM) Increment 1 to 400 missiles per year under a March 2025 Indefinite Delivery Indefinite Quantity award from the US Army. This ramp-up supports Early Operational Capability deliveries and replaces aging ATACMS systems with enhanced range capabilities up to 500 km, potentially extending to 650 km.
The Pentagon awarded a $4.9 billion contract in late March 2025 for 1,296 PrSM Increment 1 missiles through 2029, targeting stationary threats, plus 10 Increment 2 units with seekers for moving targets. Prior contracts from 2023-2025 covered 282 missiles. Production incorporates automation and advanced quality control to meet demand.
On March 12, 2026, Lockheed Martin completed the first flight test of PrSM Increment 2, launched from a HIMARS platform. The missile flew over 200 miles, validating a multi-mode seeker for engaging moving land and maritime targets. “With Increment 2, PrSM delivers the long-range capability the Army asked for to defeat moving land and maritime threats,” said Carolyn Orzechowski, vice president of Lockheed Martin Precision Fires Launchers and Missiles.
Gaylia Campbell, vice president and general manager of Lockheed Martin Tactical Missiles, noted the program’s use of modular design and agile processes. Two additional tests are scheduled for 2026 as Increment 2 advances through technology maturation. Australia has committed A$310 million over a decade for partnership, plus A$150 million for initial purchases.
This expansion aligns with broader Lockheed Martin efforts, including Javelin to 3,960 units yearly by late 2026 and GMLRS to 14,000 rockets annually.