The U.S. Army has granted Lockheed Martin a new $8.4 billion contract to produce the Precision Strike Missile (PrSM) through 2032, bringing the total program value to $13.3 billion. The agreement covers increased production capacity, delivery of initial operational systems, and development of future missile versions. PrSM, designed to replace the ATACMS system, boasts a range of over 499 km—significantly farther than the roughly 300 km range of the most advanced ATACMS variants. A key advantage is its larger payload capacity; a HIMARS launcher that previously carried a single ATACMS can now fire two PrSM missiles without any launcher modifications. The missile is compatible with HIMARS and M270 launchers, and its first combat use was reportedly confirmed during the 2026 "Operation Epic Fury" against targets in Iran.