# Army adds $8.4bn to Lockheed's Precision Strike Missile contract
> Ceiling raised and program extended to FY2032; PrSM production set to quadruple

**Meta:** type: event · date: 2026-06-23 · heads: किसका पैसा, लंबी पारी · 9 takes · 3 lenses · 3 regions

## Summary

On 23 June 2026 the US Army added $8.4bn to [Lockheed Martin](/hi/entity/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](/hi/entity/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](/hi/n/rtx-patriot-gem-t-europe-2026) 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.

## Regional takes (batched by bias / lens)

### unlabelled
- **Lockheed Martin** (United States, en) — Company release on the PrSM production expansion; with the prior award the actions quadruple Precision Strike Missile capacity.
  Source: https://www.lockheedmartin.com/en-us/news/features/2026/lockheed-martin-and-the-us-department-of-war-further-expand-prsm-production.html
- **Lockheed Martin (Q1 2026 results)** (United States, en) — 
  Source: https://news.lockheedmartin.com/2026-04-23-Lockheed-Martin-Reports-First-Quarter-2026-Financial-Results
- **SEC (Form 8-K)** (United States, en) — 
  Source: https://www.sec.gov/Archives/edgar/data/0000936468/000162828026026683/ex991q12026.htm
- **Defence Industry Europe** (European Union, en) — 
  Source: https://defence-industry.eu/lockheed-martin-to-increase-precision-strike-missile-production/
- **Investing.com** (Global, en) — 
  Source: https://www.investing.com/news/stock-market-news/lockheed-martin-wins-476-billion-missile-production-contract-93CH-4606888
- **GovConWire** (United States, en) — 
  Source: https://www.govconwire.com/s/company/lockheed-martin
- **Money Morning** (United States, en) — 
  Source: https://moneymorning.com/2026/06/09/lockheed-martin-lmt-defense-contracts-stock-analysis-june-2026

### US defence-acquisition specialist
- **DefenseScoop** (United States, en) — Reports the DoD agreement to accelerate PrSM, detailing the modification mechanics, the ceiling increase and the extended ordering period that underpins the production quadrupling.
  > "The deal accelerates PrSM output, extending the ordering period and lifting the contract ceiling."
  Source: https://defensescoop.com/2026/03/25/army-precision-strike-missile-production-prsm-lockheed-martin/

### US defence-workforce trade
- **ClearanceJobs** (United States, en) — Breaks down the 23 June $8.4bn modification (P00007) extending PrSM Increment One through FY2032 and raising cumulative contract face value to ~$13.34bn.
  > "An $8.4bn add brings the PrSM contract's cumulative value above $13.3 billion through 2032."
  Source: https://news.clearancejobs.com/2026/06/23/lockheed-martin-wins-8-4-billion-army-missile-contract-boost/

## Across the graph
- Related: [[rtx-patriot-gem-t-europe-2026]], [[sipri-2025-arms-transfers-europe-surge]]
- Entities: Lockheed Martin, United States

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