Lockheed Martin revealed on Monday that it has been awarded a contract valued at nearly $5 billion by the U.S. Army to develop its next-generation long-range precision strike missile.
The contract, which amounts to approximately $4.94 billion, requires Lockheed Martin to supply Precision Strike Missiles (PrSM) to the Army. This missile is envisioned as the successor to the Army Tactical missile (ATACM).
The PrSM missiles are designed to be compatible with both the High Mobility Artillery Rocket System (HIMARS) and the Multiple Launch Rocket System (MLRS), which are utilized by the Army and Marine Corps, as well as various allied nations that have procured or are looking to acquire these systems.
“Lockheed Martin is dedicated to providing this deterrent capability in alignment with the Army’s vision for a lethal and resilient force,” stated Carolyn Orzechowski, Vice President of Precision Fires Launchers and Missiles at Lockheed Martin. “Our focus remains on accelerating production at scale to ensure that the warfighter receives this essential capability to maintain peace through strength.”
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Lockheed reports that the PrSM boasts a range exceeding 499 kilometers, or approximately 310 miles. The missile features an open architecture design that permits incremental enhancements aimed at extending its range further.
The company has also developed various variants of the PrSM, which include options tailored for land-based anti-ship operations, extended-range capabilities, and the ability to carry various types of munitions.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LMT | LOCKHEED MARTIN CORP. | 430.82 | -1.33 | -0.31% |
This contract for the Army’s PrSM is structured as an indefinite delivery, indefinite quantity contract, providing the flexibility needed when precise quantities and timelines are uncertain.
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While this contract is intended for the Army, both the U.S. Marine Corps and the Australian Army have expressed interest in acquiring the PrSM.
Lockheed Martin’s success in securing this precision strike missile contract comes on the heels of its loss in the competition for the Air Force’s next generation air dominance (NGAD) fighter jet contract, which is valued at over $20 billion and has been awarded to Boeing to succeed Lockheed’s F-22 Raptor.
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