Lockheed Martin (NYSE: LMT) announced a framework agreement with the Department of War to accelerate production of Precision Strike Missiles, quadrupling manufacturing capacity. The agreement builds on a $4.94 billion contract from the U.S. Army awarded last year.

The framework includes provisions for a potential multi-year contract lasting up to seven years, contingent on congressional authorization. Lockheed Martin operates more than 115,000 square feet of dedicated space for PrSM production in the United States, with over 400 employees currently supporting the program.

U.S. Central Command confirmed on March 4 that the long-range PrSM was used in combat for the first time during Operation Epic Fury, marking the system's operational debut. The Army granted Milestone C approval for PrSM in July 2025, signaling readiness for full production and deployment.

The PrSM system is designed to replace the Army Tactical Missile System (ATACMS), offering extended range and improved lethality. The missile system provides enhanced deep-strike capability for military operations.

"Lockheed Martin delivers the advanced precision fires capabilities the warfighter needs, including the Precision Strike Missile (PrSM), which expands deep-strike capability," said CEO Jim Taiclet. "We are working closely with the Department of War and the U.S. Army to scale production to meet operational demand."

Lockheed Martin has invested more than $7 billion since 2017 to expand capacity for priority systems, with approximately $2 billion dedicated specifically to accelerating munitions production. The company previously announced similar production acceleration agreements for PAC-3 Missile Segment Enhancement interceptors and Terminal High Altitude Area Defense interceptors under the Department of War's Acquisition Transformation Strategy.