Lockheed Martin Secures $1.2B Contract for Precision Strike Missile Increment 2 After Second Maritime Test

New PrSM demonstrates moving target engagement expanding the U.S. Army's mission set DALLAS, Sept. 21, 2026 /PRNewswire/ -- The U.S. Army has awarded Lockheed Martin (NYSE:LMT) an indefinite delivery, indefinite quantity (IDIQ) contract worth up to $1.2 billion to produce Increment 2 of the Precision Strike Missile (PrSM), further strengthening the nation's Arsenal of Freedom after a second flight test demonstrated the missile's ability to engage moving maritime targets.Lockheed Martin launches PrSM Increment 2 during an August flight test. Photo Credit: U.S. Army THE BIG PICTURE Contract: The IDIQ covers initial procurement and future orders of PrSM Increment 2 missiles, follow-on production and continued development.