Lockheed wins up to $1.2 billion US Army contract for Precision Strike Missile Increment 2

Lockheed Martin won a U.S. Army IDIQ contract worth up to $1.2 billion to produce Precision Strike Missile Increment 2.

The award covers initial procurement, follow-on production, future orders and continued development for the next-generation long-range precision fires program.

The contract follows a second flight test showing the missile can engage moving maritime targets, expanding the Army’s long-range strike options.

Lockheed plans to start initial Increment 2 production while continuing flight testing; additional tests are scheduled for 2027.