The U.S. Army has awarded Lockheed Martin a $1.2 billion contract to produce Precision Strike Missile Increment 2 (PrSM Increment 2) missiles, which are capable of striking moving maritime and ground targets.
Lockheed Martin reported on this.
The IDIQ contract covers the initial purchase of missiles, future orders, mass production, and continued development of this version of the PrSM.
The missile is equipped with a multi-mode seeker, which enables it to engage not only stationary targets but also moving ground and sea targets.
It is this capability that distinguishes the new version from the base version of the missile. Increment 2 effectively adds long-range anti-ship capability to the HIMARS and M270 systems.
Prior to the contract award, the missile underwent two flight tests—in March and August 2026. During the second test, the PrSM Increment 2 was launched from a HIMARS rocket system, after which the missile flew and struck a moving maritime target.
Militarnyi previously reported that the tests focused on verifying the performance of the new guidance system and the missile’s capability to engage moving targets. The launch was conducted from a standard HIMARS launcher.
Lockheed Martin noted that the development of the PrSM Increment 2 guidance system drew on the capabilities of the Strigo series, which includes radio-frequency sensors, data links, and homing head technologies. The next flight tests of this version are scheduled for 2027.
Once the contract is finalized, the company will begin production of the first batch of Increment 2 missiles in parallel with further testing and system validation. Production volumes may be increased in the future depending on orders from the U.S. Army.
At the same time, Lockheed Martin is expanding its production capacity for the PrSM in general. The company has announced plans to quadruple the production rate of these missiles while continuing to develop subsequent variants of the series.
The PrSM is being developed as a replacement for the ATACMS tactical missiles and is launched from M142 HIMARS and M270 MLRS launchers. The missile is intended to provide the U.S. Army with greater range and target accuracy compared to the previous system.
The PrSM is based on a solid-fuel design typical of modern operational-tactical missiles. Militarnyi discussed in more detail how advances in solid rocket propellant have impacted the range, mobility, and operational readiness of missile systems in a separate article.
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