- Lockheed Martin stated that its agreement with the Department of War includes an option to negotiate a multi-year contract for up to seven years, depending on Congress granting multi-year authority.
- The company highlighted that it has invested more than $7 billion since President Donald Trump’s first term. This includes a $2 billion investment to accelerate munitions production.
- Lockheed Martin added that more than 400 employees are currently working on its Precision Strike Missiles project.
Lockheed Martin Corp. (LMT) on Wednesday announced that it is quadrupling the production of Precision Strike Missiles (PrSM), following a framework agreement with the U.S. Department of War.
This comes after the U.S. Central Command confirmed earlier this month that long-range Precision Strike Missiles were used for the first time in the ongoing Iran war.
The agreement builds on a $4.94 billion contract that was awarded to Lockheed Martin in March 2025 to produce additional Precision Strike Missiles.
Lockheed Martin shares were up nearly 1% in Wednesday’s pre-market trade before paring most of the gains. Retail sentiment on Stocktwits around the company trended in the ‘bearish’ territory at the time of writing.
What Does The Agreement Include?
Lockheed Martin stated that its agreement with the Department of War includes an option to negotiate a multi-year contract for up to seven years, depending on Congress granting multi-year authority.
“We are working closely with the Department of War and the U.S. Army to scale production to meet operational demand and ensure the joint force has the capabilities needed to deter and defeat emerging threats,” said Lockheed Martin CEO Jim Taiclet.
The company highlighted that it has invested more than $7 billion since President Donald Trump’s first term. This includes a $2 billion investment toward the acceleration of munitions production.
Lockheed Martin added that more than 400 employees are currently working on its Precision Strike Missiles project, which is supported by a dedicated operating space spanning across 115,000 square feet.
This comes as the Iran war enters its 27th day, with some signs of potential talks between the U.S. and Iran to discuss a ceasefire.
What Is The Precision Strike Missile Capable Of?
Lockheed Martin stated that its Precision Strike Missiles have a range of more than 499 kilometers. This new surface-to-surface weapon system has two missile rounds per launch pod and the company says it has an open systems architecture that makes it modular.
LMT stock is up 26% year-to-date and 40% over the past 12 months. The Vanguard Total Stock Market Index Fund ETF (VTI) and the Vanguard S&P 500 ETF (VOO) are up 14% over the past 12 months.
Also See: Iran Reportedly Snubs Ceasefire Plan, Officials Say Trump Is Negotiating With Himself
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