Lockheed Martin (NYSE:LMT) and the U.S. Department of War (DoW) announced a landmark framework agreement on March 25, 2026, to dramatically accelerate the manufacturing of Precision Strike Missiles (PrSM).
The initiative aims to quadruple the current production capacity for the long-range munition, positioning Lockheed Martin as a primary Tier 1 supplier under the Department’s new Acquisition Transformation Strategy.
The agreement builds upon a $4.94 billion U.S. Army contract awarded in March 2025, which initially moved the PrSM program from prototype to large-scale production.
This latest framework includes provisions to negotiate a multi-year procurement contract for up to seven years, a move designed to provide industrial stability, contingent upon future congressional authorization.
The urgency for increased capacity follows the system's operational debut.
U.S. Central Command confirmed that the long-range PrSM was used in combat for the first time on March 4, 2026, during Operation Epic Fury.
Designed to replace the aging Army Tactical Missile System (ATACMS), the PrSM offers superior lethality, extended range beyond 400 kilometers, and the ability to load two missiles per launch pod on existing HIMARS and M270A2 platforms.
To support this ramp-up, Lockheed Martin has utilized its cumulative $7 billion investment in facility expansion and modernization since 2017—including $2 billion specifically for munitions.
The PrSM program currently leverages more than 115,000 square feet of dedicated production space and a specialized workforce of over 400 U.S. employees.