Raytheon, a business unit of RTX (NYSE: RTX), has secured a $745 million contract from the Missile Defense Agency for the production and sustainment of Standard Missile-3 Block IIA interceptors.
The contract is aimed at strengthening both U.S. and allied readiness against increasingly sophisticated ballistic missile threats across multiple regions.
Barbara Borgonovi, president of Naval Power at Raytheon, emphasized the strategic importance of the weapon system in modern regional defense frameworks.
“SM-3 Block IIA is a cornerstone of regional defense, giving the U.S. and allied partners greater reach, accuracy and confidence against evolving threats,” Borgonovi said.
She added that sustained investments in production infrastructure are already yielding faster delivery timelines for customers requiring these critical munitions.
“We’ve made sustained investments in our production lines and processes, which are allowing us to increase capacity and deliver these critical munitions to our customers more quickly,” Borgonovi said.
The SM-3 Block IIA is a cooperatively developed program between Raytheon and Japanese industry, marking it as a key allied defense collaboration effort.
The missile features a larger rocket motor and an enhanced kinetic warhead compared to its predecessors, enabling it to engage threats faster and defend larger geographic areas.
It is specifically designed to counter short- to intermediate-range ballistic missile threats, giving both naval and land-based defense systems broader protective coverage.
RTX has committed significant capital to expand production capacity across the Standard Missile Family, including a recent $115 million expansion of its Alabama missile integration facility.
That facility expansion is projected to increase integration and delivery capacity by more than 50%, accelerating the timeline for getting interceptors into the field.
Production under the newly awarded contract will be carried out at Raytheon facilities located in Tucson, Arizona, and Huntsville, Alabama.
RTX reported 2025 sales of more than $88 billion and employs more than 180,000 people globally, with its headquarters based in Arlington, Virginia.
Raytheon noted it is actively hiring across the program, with opportunities available for emerging talent, experienced professionals, and veterans supporting this critical defense initiative.
