Raytheon unit of RTX wins up to $6.3 billion multi‑year SM‑3 IB missile interceptor contract
RTX’s Raytheon business was awarded a contract by the U.S. Missile Defense Agency to produce Standard Missile‑3 Block IB interceptors. The agreement spans five years with two optional extension years, with a maximum value of $6.3 billion. Production will be carried out at facilities in Tucson, Arizona and Huntsville, Alabama. The contract supports the replenishment of U.S. missile‑defense inventories and is non‑competitive.
Why it matters
The contract adds a long‑term revenue stream to RTX’s defense backlog, which the company says will significantly boost its revenue and earnings. The guaranteed production volume also improves visibility for future cash flows.
Key facts
- 1The contract is valued up to $6.3 billion. prnewswire.com
- 2It covers a five‑year period with two optional extension years. prnewswire.com
- 3Production will be performed at Raytheon facilities in Tucson, Arizona and Huntsville, Alabama. prnewswire.com
- 4The contract is for Standard Missile‑3 Block IB (SM‑3 IB) interceptors. prnewswire.com
- 5RTX reported 2025 sales of more than $88 billion and employs about 180,000 people. prnewswire.com
- 6RTX’s stock traded at $184.32 after the announcement. gurufocus.com
Open questions
- Some sources list a base contract value of $4.43 billion with potential options raising the total to $6.34 billion.
- One outlet describes the contract value as “up to $6 billion”.
Summary written by AlphAI from 12 of 12 sources. Not investment advice. Figures are as stated by the linked sources.