Lockheed Martin has secured a $1.2 billion contract from the U.S. Army for the Precision Strike Missile Increment 2 program, featuring a cost-plus-fixed-fee and firm-fixed-price indefinite-delivery/indefinite-quantity structure. Managed by the Army Contracting Command at Redstone Arsenal, Alabama, work on the contract will run through September 13, 2031, with production centered at the company’s facility in Grand Prairie, Texas.
The next-generation surface-to-surface weapon system is engineered to engage targets at ranges exceeding 499 kilometers, accommodating two rounds per launch pod while remaining compatible with M270 and HIMARS launchers. Built with an open systems architecture, the missile supports rapid capability upgrades and extended ranges for joint force operations, according to the official website of the United States Government.
Increment 2 specifically introduces a multi-mode seeker to the platform, expanding the baseline land-attack system to engage moving maritime targets and time-sensitive threats. Following a successful 350-kilometer flight test in March 2026 that validated seeker performance and system deployment from a HIMARS launcher, the program is currently advancing through its Preliminary Design Review, with additional flight tests scheduled for late 2026.
