A $1.2 Billion Reason to Buy Lockheed Martin Stock

Lockheed Martin (LMT) has secured a potentially significant new catalyst for investors, with the U.S. Army awarding the defense giant an indefinite-delivery, indefinite-quantity (IDIQ) contract valued at up to $1.2 billion to produce the next-generation Precision Strike Missile (PrSM) Increment 2. This was announced on Sept. 21 and covers initial procurement, future orders, follow-on production, and continued development of the missile, with work to be performed at Lockheed Martin facilities and across its U.S. industrial base.

The contract moves PrSM Increment 2 from flight testing toward production after two successful flight tests in 2026. The first test took place in March, while the second in August demonstrated the missile’s ability to engage a moving maritime target. The Increment 2 variant features a multimode seeker designed to engage both moving land and maritime targets, expanding the Army’s long-range precision-strike capabilities beyond the baseline system.