Pentagon Signs Boeing and RTX Deals to Expand SM-3 Interceptor Production

On Aug. 14, the Pentagon announced framework agreements with Boeing and RTX (Raytheon) to expand production of components for SM-3 Block IB and Block IIA ballistic missile interceptors. SM-3 Block IIA received a separate $745 million contract for production and sustainment. The Pentagon said it will ramp up production and negotiate a multiyear award; values and targets were not disclosed.

The U.S. Department of War said it signed seven-year framework deals with Boeing and Raytheon to expand output of ship-launched SM-3 Block IB and Block IIA interceptor components, including avionics and ejector assemblies. Boeing, the government, and Raytheon will scale production while negotiating later multi-year contracts. Boeing said earlier Patriot seeker deliveries rose over 30% in 2025.

Boeing will sell three subsidiaries, Wisk Aero, Insitu, and SkyGrid, to Archer Aviation in an all-stock deal pending regulatory approval, expected to close by end-2026. Boeing will receive about a 16.5% stake in Archer and an estimated $200 million in stock, plus continued access to autonomy technology.

The US Pentagon said it signed two agreements with Boeing and RTX to speed production of key components for Standard Missile-3 Block IB and increase components for Standard Missile-3 Block IIA. The missiles support ship-based air and ballistic missile defense under the Aegis system. The article also cites US defense budget requests of $1.5 trillion and production capacity targets for SM-3.

Reuters reports Boeing said it is selling Wisk Aero as part of shedding a non-core air taxi business, amid its turnaround focus. Analysts cite prior sales including Jeppesen for $10.6B in 2025 and a nearly 20% stake in Archer Aviation. Boeing will receive Archer equity at closing; the stake is valued at just over $1B. BA and ARCHER shares moved on the news.

The U.S. Department of War announced framework agreements with Boeing and RTX to increase production of Standard Missile-3 Block IB and Block IIA components for the Aegis Ballistic Missile Defense System. Boeing will lead component manufacturing. The deals are intended to expand munitions output, stabilize supply chains, and speed delivery to naval forces.