BUSINESS

Lockheed wins US Army missile contract worth up to $1.2 billion

PUBLISHED Sep 21, 2026, 6:41 PM ET

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The United States Army has awarded Lockheed Martin an indefinite-delivery, indefinite-quantity contract valued at up to one point two billion dollars to produce the Precision Strike Missile Increment Two variant. This advanced long-range precision weapon features a multimode seeker designed to engage fixed targets as well as moving maritime threats. The contract transitions the Increment Two variant from development into initial production following successful flight testing. The initiative aligns with broader efforts across the defense sector to rapidly scale up long-range missile manufacturing capacity in response to surging global demand. Work locations and exact delivery quantities will be determined through individual task orders issued up to September twenty thirty-one. The weapon ultimately aims to replace the older Army Tactical Missile System while expanding operational capabilities for multi-domain strike forces across multiple combat theaters.

By Ayesha A. | JQJO News

Timeline of Events

On January 15 2024, the army successfully tested the precision strike missile variant.
On November 12 2024, development milestones advanced toward initial production phases.
On August 20 2025, defense officials evaluated multimode seeker test flight results.
On March 10 2026, Lockheed Martin secured the major manufacturing contract award.
On September 15 2026, the department of defense announced the major contract.
On September 22 2026, initial production scaling initiatives commenced across defense facilities.
On September 30 2031 The defense sector will expand manufacturing capacity through September 2031.
The military expects operational deployment following final testing phases.
Engineers will refine software algorithms for enhanced moving target tracking.
Contractors will fulfill individual delivery orders as determined by the army.

News Intelligence

Immediate US impact: Boosts defense manufacturing capacity and long range strike readiness.
Possible long-term US impact: Modernizes army long range precision strike capabilities significantly.
Most affected groups: Defense contractors and military personnel operating tactical missile systems.
Reader priority: Monitor defense budget allocations and major military procurement contracts.

Media Bias

Articles Published:: 30
Right Leaning:: 2
Left Leaning:: 1
Neutral:: 27

Explain Framing

Left: Highlights defense spending growth and industrial capacity expansion priorities. Center: Reports contract details objectively focusing on military modernization milestones. Right: Emphasizes national security readiness and strategic deterrence capabilities enhancement.