EL7.AI
StocksMedium•21 September 2026•
1 min read

Lockheed Martin Secures $1.2B U.S. Army Contract for PrSM Increment 2

Key Facts

1The U.S. Army awarded Lockheed Martin an IDIQ contract worth up to $1.2 billion for Precision Strike Missile (PrSM) Increment 2 production.
2The contract follows a successful second flight test demonstrating the missile's ability to engage moving maritime targets.

In a move reflecting the acceleration of U.S. military modernization, the U.S. Army has awarded Lockheed Martin a contract worth up to $1.2 billion. The agreement covers the production of Increment 2 of the Precision Strike Missile (PrSM), a next-generation long-range precision fires system. This award follows a successful second flight test that demonstrated the missile's capability to engage moving maritime targets, significantly expanding the Army's multi-domain strike options.

Per market data, LMT stock closed at $533.38 on September 18, 2026, having traded between a day low of $527.1 and a high of $538.1. The new Indefinite Delivery, Indefinite Quantity (IDIQ) contract marks the transition of the PrSM Increment 2 program from development and flight testing into full-scale production, bolstering the company's position in advanced defense technology and long-range weaponry.

Traders are monitoring Lockheed Martin's price levels following the close on September 18, 2026, as the market processes the impact of this major contract win. While the upcoming economic calendar shows no immediate defense-specific catalysts, investors will be watching for further production orders within this contract framework to gauge the long-term revenue impact on the aerospace giant.