Understanding with the Department of War (DoW) expands the program’s industrial capacity and builds on a previous US$ 4.94 billion contract signed with the United States Army.
Lockheed Martin announced on Wednesday, March 25, 2026, a framework agreement with the Department of War (DoW) to accelerate production of the PrSM precision strike missile (Precision Strike Missile), in another step aimed at expanding industrial capacity for long-range weapons in the United States.
According to the company, the initiative builds on a previous contract award worth US$ 4.94 billion, granted by the U.S. Army last year, and is expected to result in a fourfold increase in the system’s production capacity.
According to the statement, the agreement also provides for the possibility of negotiating a multi-year contract lasting up to seven years, conditional on Congress granting multi-year authority and future legislative approval.
The PrSM is described as the successor to the ATACMS (Army Tactical Missile System) and was developed to offer greater range, increased lethality, and more flexible employment compared with the previous generation. The manufacturer notes that the program advanced through integration between government and industry and, in July 2025, received approval for the so-called Milestone C, a phase indicating readiness for full-rate production and large-scale deployment.
The announcement comes just weeks after U.S. Central Command confirmed, on March 4, the first combat use of the long-range PrSM during Operation Epic Fury. The system’s operational debut was presented as a demonstration of the platform’s expanded deep-strike capability.
In a statement, Lockheed Martin Chairman and CEO Jim Taiclet said the company is working with the DoW and the U.S. Army to expand production and meet operational demand. According to him, the PrSM is part of the suite of long-range precision fires capabilities the company has been developing for the U.S. joint force.
Lockheed Martin also said it has invested more than US$ 7 billion since President Donald Trump’s first term to expand capacity for priority systems. Of that total, approximately US$ 2 billion was reportedly directed specifically toward accelerating munitions production, with investments in facilities, tooling, suppliers, and workforce.
According to the company, its industrial strategy also includes other agreements aimed at expanding interceptor production, such as the PAC-3 Missile Segment Enhancement (MSE) and THAAD. In the case of the PrSM, Lockheed Martin says it has more than 115,000 square feet of space dedicated to operations in the United States and more than 400 employees currently linked to the program.
The manufacturer also tied the production expansion to the growth of industrial employment in the country, saying that rising demand has driven job openings in manufacturing, engineering, and skilled trades.
In the new agreement, Lockheed Martin reinforces that expanding PrSM production is part of a broader effort to strengthen the American defense industrial base and accelerate delivery of systems considered priorities for the U.S. armed forces.
Source and images: Lockheed Martin. This content was created with the help of AI and reviewed by the editorial team.
