Lockheed Martin to Expand PrSM Missile Output

Lockheed Martin has announced a framework agreement with the U.S. Department of War to increase production of the Precision Strike Missile (PrSM), with plans to expand manufacturing capacity by up to four times. The agreement builds on a $4.94 billion contract awarded by the U.S. Army in 2025 and is intended to support increased demand for long-range precision strike capabilities.

The framework includes provisions for a potential multi-year contract of up to seven years, subject to approval by Congress. The initiative is part of broader efforts to expand munitions production capacity and strengthen supply chains for defence systems.

The PrSM is designed to replace the Army Tactical Missile System (ATACMS) and provide extended range and flexibility for long-range strike missions. According to the company, the system has progressed to full-rate production following Milestone C approval in 2025.

On March 4, U.S. Central Command confirmed that the PrSM was used in combat for the first time during Operation Epic Fury. This marked the operational debut of the missile system in a real-world scenario.

“Lockheed Martin delivers the advanced precision fires capabilities the warfighter needs, including the Precision Strike Missile (PrSM), which expands deep-strike capability,” said Jim Taiclet, Chairman, President and CEO of Lockheed Martin. “We are working closely with the Department of War and the U.S. Army to scale production to meet operational demand and ensure the joint force has the capabilities needed to deter and defeat emerging threats.”

Lockheed Martin said it has invested more than $7 billion since 2017 to expand production capacity across its defence programmes, including about $2 billion focused on munitions manufacturing. The company currently operates more than 115,000 square feet of production space for the PrSM programme, supported by over 400 employees.

The agreement is part of a broader acquisition strategy aimed at increasing output of key missile systems, including PAC-3 Missile Segment Enhancement and Terminal High Altitude Area Defense interceptors.

The planned increase in production capacity is intended to support ongoing and future operational requirements for long-range precision strike systems.