Lockheed Martin awarded up to $1.2 billion US Army contract for Precision Strike Missile Increment 2

Lockheed Martin confirmed it has won a US Army contract valued at up to $1.2 billion for the Increment 2 variant of the Precision Strike Missile. The award comes after a second flight test demonstrated the missile’s capability to engage moving sea-borne targets. This missile is slated to succeed the Army Tactical Missile System (ATACMS) as the service’s primary long-range precision strike option.

The company is also increasing its annual production capacity to 550 units under a seven-year deal with the US Department of War, following a $4.94 billion contract awarded last year. The weapon saw its first combat deployment during Operation Epic Fury, driving growing demand for such long-range systems. Lockheed’s Bengaluru office highlighted the contract as part of its broader effort to ramp up missile manufacturing.