The U.S. Army has awarded Lockheed Martin a contract valued at up to $4.94 billion to supply its next-generation Precision Strike Missiles (PrSM), establishing the system as a key component of future U.S. and allied long-range missile capabilities. Designed to replace the older Army Tactical Missile Systems (ATACMS), the PrSMs will be deployed using existing platforms such as the High Mobility Artillery Rocket System (HIMARS) and the Multiple Launch Rocket System (MLRS). These platforms are widely used by U.S. and allied forces, including the U.S. Marine Corps and the Australian Army, both of which have shown interest in acquiring the new missile system.
What Capabilities Do the New Missiles Offer?
The nearly $5 billion agreement aligns with the Army’s strategic priority to enhance its long-range precision strike capabilities. The Precision Strike Missile’s compatibility with HIMARS and MLRS enables the military to integrate it into existing infrastructure, improving operational flexibility. The contract is structured as an indefinite delivery/indefinite quantity (IDIQ) agreement, allowing the Army to adjust orders based on evolving needs without predefined limits on quantities or delivery schedules.
The PrSM is designed with a range exceeding 499 kilometers (310 miles) and features an open architecture for future upgrades. Lockheed Martin has developed multiple variants of the missile, including land-based anti-ship versions, extended-range models, and systems capable of carrying different types of explosive payloads. This modularity supports incremental performance improvements while addressing varied mission demands.
“Lockheed Martin is committed to delivering this deterrent capability in support of the Army’s vision for a lethal and resilient force,”
said Carolyn Orzechowski, Vice President of Precision Fires Launchers and Missiles at Lockheed Martin. She added,
“Our team remains focused on advancing the production at speed and scale, ensuring the warfighter receives this critical capability to maintain peace through strength.”
Earlier reports indicated that the U.S. Army had been testing the PrSM since at least 2020, with successful trials demonstrating its extended-range performance. Lockheed Martin had previously received lower-value contracts to support development and initial production. The current multi-year agreement represents a significant scale-up in commitment, especially following Lockheed’s loss of the $20 billion Air Force NGAD fighter jet contract, awarded to Boeing. The PrSM project now becomes a major pillar of Lockheed’s missile defense portfolio.
The PrSM’s attraction lies in its operational adaptability. By fitting into existing launch systems, it eliminates the need for deploying entirely new platforms. Its long-range capability supports deterrence strategies in contested regions, particularly the Indo-Pacific, where standoff distance is a key tactical concern. With open architecture, it allows for technological adjustments without requiring major redesigns, making it easier to maintain over time.
The indication that both the Marine Corps and international partners like Australia plan to adopt the PrSM points to its growing role in joint and allied operations. This also supports broader U.S. strategic goals of interoperability and force standardization across partner nations. The PrSM’s deployment readiness and future export potential could shape long-range missile doctrine across NATO and Asia-Pacific allies.
Lockheed Martin’s success with the PrSM contract reinforces the defense sector’s movement toward adaptable, modular weapon systems that can be upgraded through software and hardware improvements. For military planners and defense analysts, the deal illustrates how contract structures like IDIQ provide flexibility in procurement while allowing rapid deployment. As the missile enters serial production, stakeholders will closely monitor its integration into active units and its performance across diverse scenarios.
