RTX’s Raytheon business secured a five-year contract, with two additional option years, worth up to $6.3 billion, to produce and sustain Standard Missile-3 Block IB interceptors.
The agreement is part of a broader set of contracts between Raytheon and the Department of War and is intended to support replenishment of missile defense inventories.
Raytheon said the SM-3 Block IB has been used successfully in combat and remains an important component of U.S. and allied missile defense capabilities.
The company has been investing in production capacity and manufacturing improvements to increase output of critical munitions, including the broader Standard Missile family.
Raytheon will produce under the new contract primarily at its facilities in Tucson, Arizona, and Huntsville, Alabama.
The SM-3 Block IB is a ship- and land-based interceptor designed to defeat short- to intermediate-range ballistic missiles during the midcourse phase of flight.
The system was first used in combat in 2024.
It is part of the U.S. Navy’s extended-range integrated air and missile defense architecture alongside the SM-3 Block IIA and other members of the Standard Missile family.
The multi-year structure is designed to provide greater production stability as Raytheon works to replenish inventories and respond to evolving missile threats.
Raytheon is one of RTX’s three major businesses and provides integrated air and missile defense systems, missiles, sensors, radars, interceptors, space systems, hypersonic technologies, and other defense capabilities.
RTX employs more than 180,000 people globally and reported more than $88 billion in sales in 2025.
KEY QUOTES:
“This award underscores Raytheon’s commitment to increasing production of critical munitions, ensuring our customers have the defensive capabilities they need, when they need them. SM-3 Block IB has proven its relevance in combat and this contract helps ensure we can replenish inventories and keep pace with the evolving threats the U.S. Navy, MDA and their partners face around the world.”
Phil Jasper, President of Raytheon
