LOCKHEED MARTIN CORP · News & developments
PrSM Increment 2 puts $1.21 billion of missile work within Lockheed’s reach
The Army awarded Lockheed Martin a $1,211,234,988 contract for Precision Strike Missile Increment 2 Early Operational Capability. The cost-plus-fixed-fee, firm-fixed-price, indefinite-delivery/indefinite-quantity contract runs through an estimated September 13, 2031 completion date; work locations and funding will be determined with individual orders.
Why this matters
This is a meaningful addition to Lockheed’s missile franchise, but the contract’s architecture matters more than the rounded billion-dollar figure. An IDIQ ceiling creates ordering capacity rather than immediate revenue, and the Army has not yet attached funding or quantities to the announcement. Lockheed gains a stronger position in a program designed to broaden the missile’s mission set, while investors still need funded orders and production milestones before treating the award as booked sales or near-term cash.