Pentagon Increases Missile Production Amid Ongoing Conflict in Iran

The U.S. Department of Defense has announced three new agreements with major defense contractors, including Lockheed Martin, BAE Systems, and Honeywell Aerospace, aimed at significantly increasing the production capacity of critical missile systems. This initiative comes in response to the ongoing military operations in Iran, known as Operation Epic Fury, which commenced in February 2026. Lockheed Martin's Precision Strike Missile (PrSM) has been a key asset in these operations, marking its combat debut by successfully targeting Iranian military infrastructure.

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Under the agreements, Lockheed Martin plans to invest in advanced tooling and facility modernization to quadruple the production capacity of the PrSM. This follows a previous $4.9 billion indefinite delivery, indefinite quantity (IDIQ) contract awarded by the Army, which allows for flexible purchasing timelines. The Army's budget documents indicate plans to acquire 152 PrSM units in fiscal 2026, with potential for a multi-year procurement contract if authorized by Congress.

DefenseScoopLockheed Martin's Missile Program Demonstrates Dual Combat and Testing Milestones

The PrSM, a surface-to-surface ballistic missile with a range exceeding 500 kilometers, has demonstrated its effectiveness in combat. Recently, U.S. Central Command reported that the Army executed the longest field artillery strike in its history using the PrSM, showcasing the missile's operational capabilities. Adm. Brad Cooper emphasized the missile's role in demonstrating the U.S. military's reach and lethality.

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The Army intends for the PrSM to eventually replace the MGM-140 Army Tactical Missile System (ATACMS) and is developing follow-on increments, including an anti-ship variant. Lt. Gen. Frank Lozano highlighted the need for greater inventory and magazine depth, indicating that the PrSM's capabilities are critical for future military engagements.

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The agreements with BAE Systems and Honeywell Aerospace also aim to enhance the production of missile subsystems and components. BAE Systems will accelerate production of seekers for the Terminal High Altitude Area Defense (THAAD) interceptor missile, while Honeywell will increase output of various missile components, including navigation systems and electronic warfare solutions. Michael Duffey, Under Secretary of Defense for Acquisition and Sustainment, stated that these agreements are designed to place the industrial base on a wartime footing, ensuring that the U.S. military can maintain its technological edge.

Defense NewsDefenseScoopLockheed Martin's Missile Program Demonstrates Dual Combat and Testing Milestones

Despite the push for increased production, there are concerns regarding the sustainability of such rapid expansion. Critics argue that the focus on immediate production needs may overlook long-term strategic planning and the potential for over-reliance on specific contractors. Additionally, Lockheed Martin faces legal challenges, including a lawsuit alleging appropriation of business models from a competitor, which could impact its operational focus.

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• “Through this agreement, we are actively building the Arsenal of Freedom with speed and urgency,” — Michael Duffey, Under Secretary of Defense for Acquisition and Sustainment

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• “Just two days ago the U.S. Army launched the longest field artillery strike in Army combat history using Precision Strike Missiles. The strike took out Iranian military infrastructure, demonstrating the U.S. military’s unmatched reach and lethality,” — Adm. Brad Cooper, Head of U.S. Central Command

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As the Pentagon continues to enhance its missile production capabilities, the implications for U.S. military strategy and defense industry dynamics remain significant, particularly in the context of ongoing conflicts and evolving global threats.

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