Boeing (NYSE: BA) has signed seven-year framework agreements with the US Department of War and Raytheon, a business unit of RTX (NYSE: RTX), to expand production of key missile defense components.
The agreements cover avionics and ejector assemblies for the Standard Missile-3, a sea-based interceptor engineered to neutralize missile threats operating outside the atmosphere.
Production increases will target hardware for both the SM-3 Block IB and Block IIA variants, two of the program’s most advanced configurations currently in service.
Under the framework structure, Boeing, the Department of War, and prime contractor Raytheon will begin ramping production capacity before a formal multi-year contract award is finalized.
That arrangement effectively requires Boeing to commit manufacturing resources and capacity before the full financial terms are officially locked in by the parties involved.
“This gives us a clear demand signal to build and deliver SM-3 interceptors,” said Bob Ciesla, vice president of Boeing Precision Engagement Systems.
No financial terms tied to the framework agreements were disclosed publicly by Boeing or any of the parties involved in the deal.
Boeing shares were up 0.18% in premarket trading following the announcement, with RTX (NYSE: RTX) shares rising 1.47% and Lockheed Martin (NYSE: LMT) gaining 1.78% on the session.
The SM-3 agreement follows a structurally similar deal Boeing previously reached with the Department of War and Lockheed Martin (NYSE: LMT) to accelerate output of PAC-3 Missile Segment Enhancement seekers.
That pattern of framework-first agreements signals a broader push by the Department of War to secure industrial capacity for missile defense systems well ahead of formal procurement cycles.
These deals reflect growing urgency across the US defense establishment to expand interceptor stockpiles and strengthen layered missile defense capabilities at scale.
Boeing’s Precision Engagement Systems division is emerging as a central player in the Pentagon’s effort to surge production of critical missile defense hardware across multiple platforms.
