Lockheed Martin said it has signed a new framework agreement with the US Department of War to accelerate production of the Precision Strike Missile (PrSM), a move the company says will quadruple manufacturing capacity for the US Army’s next-generation long-range surface-to-surface missile.
The announcement, made on March 25, 2026, builds on a March 2025 US Army contract worth up to $4.94 billion for additional PrSM production.
The company did not disclose the future annual production rate in the release, but said the new agreement is intended to expand capacity and could eventually support a multiyear contract of up to seven years, subject to congressional authorization. Lockheed Martin said the arrangement is designed to accelerate output as demand for long-range precision fires continues to grow.
PrSM is being developed as the successor to the Army Tactical Missile System, or ATACMS, and is designed for launch from both the M142 HIMARS and M270 family of launchers. According to the US Army, PrSM Increment 1 is designed to strike targets at ranges beyond 400 kilometers, while offering a larger missile load per launcher pod than ATACMS.
Lockheed Martin links PrSM push to wider munitions ramp-up
Lockheed Martin’s announcement also comes weeks after the US Central Command said PrSM had been used in combat for the first time during Operation Epic Fury, marking the missile’s operational debut.
In a historic first, long-range Precision Strike Missiles (PrSMs) were used in combat during Operation Epic Fury, providing an unrivaled deep strike capability.
“I just could not be prouder of our men and women in uniform leveraging innovation to create dilemmas for the enemy.”… pic.twitter.com/bydvIv5Tn5
— U.S. Central Command (@CENTCOM) March 4, 2026
The production push builds on a US Army contract awarded on March 28, 2025, with a ceiling value of about $4.9 billion and a first delivery order covering 400 PrSM Increment 1 missiles. The program achieved Milestone C on July 2, 2025, formally entering the production and deployment phase, and later completed Initial Operational Test and Evaluation at White Sands Missile Range in September 2025. The US Army is also developing future PrSM increments, including an Increment 2 variant intended to add a multimode seeker for moving and maritime targets.
Lockheed Martin is presenting the new framework agreement as the next step in that expansion, linking it to wider efforts to increase US munitions output across several missile programs. The company said it has invested more than $7 billion since President Donald Trump’s first term to expand capacity for priority systems, including around $2 billion focused specifically on munitions production.
That broader push is already visible across other major Lockheed Martin programs. The company has been working to double HIMARS launcher production from 60 to 96 units a year, has raised Javelin output to 2,400 missiles annually with a target of 3,960 by late 2026, and is working toward PAC-3 MSE production of 650 interceptors a year.
