Lockheed Martin (NYSE:LMT) announced a framework agreement with the Department of War aimed at accelerating the production of Precision Strike Missiles (PrSM), with plans to expand manufacturing capacity fourfold. The arrangement builds on a $4.94 billion contract awarded by the U.S. Army last year.
The framework includes the possibility of a multi-year contract lasting up to seven years, subject to approval by Congress. Lockheed Martin currently operates more than 115,000 square feet of dedicated manufacturing space for the PrSM program in the United States, supported by over 400 employees.
On March 4, U.S. Central Command confirmed that the long-range PrSM was used in combat for the first time during Operation Epic Fury, marking the system’s operational debut. The U.S. Army granted Milestone C approval for the program in July 2025, signaling readiness for full-scale production and deployment.
The Precision Strike Missile is intended to replace the Army Tactical Missile System (ATACMS), offering greater range and improved lethality. The system is designed to enhance deep-strike capabilities for military operations.
“Lockheed Martin delivers the advanced precision fires capabilities the warfighter needs, including the Precision Strike Missile (PrSM), which expands deep-strike capability,” said CEO Jim Taiclet. “We are working closely with the Department of War and the U.S. Army to scale production to meet operational demand.”
Since 2017, Lockheed Martin has invested more than $7 billion to expand production capacity for priority defense systems, including around $2 billion specifically allocated to accelerating munitions manufacturing. The company has previously announced similar agreements to boost production of PAC-3 Missile Segment Enhancement interceptors and Terminal High Altitude Area Defense interceptors as part of the Department of War’s Acquisition Transformation Strategy.