Army adds $8.4bn to Lockheed's Precision Strike Missile contract

Summary

On 23 June 2026 the US Army added $8.4bn to Lockheed Martin's Precision Strike Missile (PrSM) contract via modification P00007, extending PrSM Increment One through fiscal 2032 and lifting the contract's cumulative face value to roughly $13.34bn. It follows a ~$4.94bn award the prior year; together the moves quadruple PrSM production capacity. PrSM, a long-range surface-to-surface missile replacing ATACMS, fired from HIMARS/MLRS, anchors United States ground-based deep-strike. Lockheed's Q1 2026 Missiles and Fire Control segment grew 8% on PAC-3 and Tactical Strike ramps; the firm also opened a new Next Generation Interceptor assembly building in Huntsville on 1 June and logged a run of awards including 26 HIMARS for Canada. See RTX's Raytheon books $3.7bn Patriot interceptor deal for Ukraine, scales European output for the interceptor side.

By the numbers

• $8.4bn, 23 Jun contract add (modification P00007).
• ~$13.34bn, new cumulative PrSM contract face value.
• ~$4.94bn, prior-year PrSM award.
• 4x, projected PrSM capacity increase.
• FY2032, extended ordering/completion horizon.
• +8%, Q1 2026 Missiles & Fire Control sales growth.

Why it matters

Multi-year ceiling raises lock in the deep-strike industrial base and signal sustained US demand for long-range fires, backstopping allied buyers and Lockheed's order book well into the 2030s, regardless of the Ukraine war's tempo.

What to watch

• Order call-offs and delivery cadence against the quadrupled capacity.
• Allied PrSM/HIMARS export requests (Australia, Poland, Baltics).
• Next Generation Interceptor milestones out of Huntsville.