Raytheon secures $745m contract for US-Japan SM-3 Block IIA missiles

The Pentagon, according to Deputy Defense Secretary Steve Feinberg’s Aug. 5 memo, gave defense firms 21 days to submit plans to accelerate weapons production and delivery, including capital investments and facility expansions, to inform the fiscal 2028 budget request. It cites stock declines for Patriot and THAAD interceptors during the Iran conflict and longer replacement timelines. Companies named include Boeing, Lockheed Martin and RTX.

Raytheon, now part of RTX, said Aug. 10 it received a $745 million contract from the U.S. Missile Defense Agency for Standard Missile-3 Block IIA production and sustainment. The SM-3 Block IIA program is jointly developed with Japanese industry. RTX also cited a $115 million Alabama facility expansion to raise Standard Missile integration and delivery capacity by more than 50%.

Raytheon, an RTX subsidiary, received a noncompetitive Missile Defense Agency contract to manufacture and assemble SM-3 Block IIA all-up rounds for the U.S. government and Japan’s defense ministry. The base value is about $745.4 million. Work runs in Tucson, AZ and Huntsville, AL through Feb. 28, 2031, with $275.6M in FY2026 procurement and $277.7M in FMS funds.

Raytheon, an RTX (NYSE: RTX) unit, received a $745 million Missile Defense Agency contract to produce and sustain Standard Missile-3 Block IIA interceptors. The program is jointly developed with Japanese industry. RTX said it expanded missile capacity, including a $115 million Alabama facility expansion, and will complete production in Tucson and Huntsville.

RTX (NYSE: RTX) said its Raytheon unit received a $745 million contract from the U.S. Missile Defense Agency to produce and sustain Standard Missile-3 Block IIA interceptors. Production will be at Raytheon facilities in Tucson, Arizona, and Huntsville, Alabama. RTX also cited a $115 million Alabama facility expansion expected to raise integration and delivery capacity by over 50%.

The Pentagon said its 30-year procurement model is structurally broken and ordered contractors including Boeing, Lockheed Martin, and RTX to propose plans within 21 days for faster delivery and higher production. The move follows CSIS estimates that Patriot and THAAD interceptor stockpiles fell at least 65% and 38%. It also includes framework deals with Northrop Grumman and large Lockheed and THAAD contracts.