Lockheed wins US Army missile contract worth up to $1.2 billion

The US Army has awarded Lockheed Martin a contract valued at up to $1.2 billion to manufacture the Increment 2 version of the Precision Strike Missile (PrSM). This advanced long-range precision strike weapon is set to replace the Army Tactical Missile System, or ATACMS. The contract comes after Lockheed Martin successfully demonstrated the missile's capability to target moving vessels through its second flight test.

As the demand for such long-range strike weapons continues to grow, Lockheed is ramping up production of the PrSM. In March, the company had signed a seven-year agreement with the US Department of Defense to boost annual production capacity to 550 missiles, following a $4.94 billion Army contract awarded last year and the weapon's first combat deployment during Operation Epic Fury.