# U.S. Army Awards $1.2B PrSM Missile Contract

The U.S. Army awarded Lockheed Martin a **$1.2 billion** contract on September 22, 2026, for the Precision Strike Missile (PrSM) system, advancing long-range missile capabilities. Concurrently, the U.S. Navy established a new autonomous systems development center to accelerate unmanned combat technologies, reflecting a strategic emphasis on modernizing defense capabilities. Internationally, Russia plans a 27% increase in its 2027 military budget to $202 billion, while the European Union outlined five defense priority areas, including drones and air defense, to coordinate collective spending. These developments signal increased defense procurement activity and evolving priorities in missile systems and autonomous technologies.

- **Why this matters:** The Lockheed Martin PrSM contract represents a significant investment in precision long-range strike capabilities, creating opportunities for contractors specializing in missile systems and related technologies.
- The Navy's autonomous systems center indicates growing demand for unmanned combat solutions, suggesting increased procurement in robotics, AI, and autonomous platforms.
- European and Russian defense budget shifts highlight a competitive global environment, influencing U.S. defense procurement priorities and potential international collaboration or competition.
- Procurement professionals should evaluate how these trends affect contract opportunities, technology requirements, and strategic partnerships in missile and autonomous systems sectors.

**Jurisdictions:** international
**Industries:** Defense & Military
**Topics:** Physical Infrastructure, Artificial Intelligence
**Published:** September 29, 2026

### Government Entities
- U.S. Army
- U.S. Navy
- Pentagon
- European Union (EU)
- British government

### Vendors
- Lockheed Martin (prime contractor)
- BAE Systems Bofors (bidder)
- Thales ()
- Saildrone ()
- Anthropic (blacklisted contractor)

### Sources
- [Defense News, Covering the politics, business and technology of defense | Defense News](https://www.defensenews.com/homepage) - Defense News