RTX's Raytheon awarded $250 million contract from MELCO for ESSM Block 2 licensed production

Rhea-AI Summary

RTX (NYSE: RTX) subsidiary Raytheon has secured a $250 million contract from Mitsubishi Electric Corporation (MELCO) for ESSM Block 2 licensed production. The Direct Commercial Sale contract involves providing missile kits, parts, components, and technical support for missile production in Japan.

The ESSM Block 2 is an advanced ship-launched guided missile with enhanced maneuverability and performance compared to Block 1. Key improvements include reduced dependence on shipboard illumination, compatibility with various combat systems, better performance in marine environments, and software upgrade capability for future threat adaptation.

Positive

• Secured significant $250 million defense contract
• Strengthens long-term partnership with MELCO spanning over 50 years
• Enhances Japan's domestic defense manufacturing capabilities
• Reinforces U.S.-Japan security alliance

Negative

• None.

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Contract represents the latest milestone in the companies' longstanding partnership

TUCSON, Ariz., June 24, 2025 /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, has been awarded a $250 million contract from Japan's Mitsubishi Electric Corporation (MELCO) for ESSM Block 2 licensed production.

Under the Direct Commercial Sale contract, Raytheon will provide missile kits, parts, and components as well as technical support for missile production at MELCO in Japan.

"This innovative licensed production arrangement is the culmination of decades of partnership," said Barbara Borgonovi, president of Naval Power at Raytheon. "As Japan invests in this critical weapon system, it will strengthen their defense capabilities while reinforcing the vital security alliance between our nations." 

Raytheon and MELCO have a longstanding partnership spanning over 50 years on critical defense programs. This contract represents the latest chapter in their collaborative relationship and allows Japan to enhance its domestic defense manufacturing and missile defense capabilities, while also strengthening the broader U.S.-Japan security partnership.

ESSM Block 2 is a short to medium-range, ship-launched, dual-mode, guided missile that has increased maneuverability and improved performance over its Block 1 predecessor. The newest variant reduces dependence on shipboard illumination and is integrated on a wide variety of combat systems and launchers, delivering improved performance in stressing marine environments, and has significant digital processing margin to keep pace with evolving threats through software improvements.

Japan is a customer nation of ESSM, which is managed by the NATO SEASPARROW Consortium composed of 12 nations.

About Raytheon
Raytheon, an RTX business, is a leading provider of defense solutions to help the U.S. government, our allies and partners defend their national sovereignty and ensure their security. For more than 100 years, Raytheon has developed new technologies and enhanced existing capabilities in integrated air and missile defense, smart weapons, missiles, advanced sensors and radars, interceptors, space-based systems, hypersonics and missile defense across land, air, sea and space.

About RTX
RTX is the world's largest aerospace and defense company. With more than 185,000 global employees, we push the limits of technology and science to redefine how we connect and protect our world. Through industry-leading businesses – Collins Aerospace, Pratt & Whitney, and Raytheon – we are advancing aviation, engineering integrated defense systems for operational success, and developing next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2024 sales of more than $80 billion, is headquartered in Arlington, Virginia.

For questions or to schedule an interview, please contact corporatepr@rtx.com.

 

View original content:https://www.prnewswire.com/news-releases/rtxs-raytheon-awarded-250-million-contract-from-melco-for-essm-block-2-licensed-production-302488708.html

SOURCE RTX

FAQ

What is the value of RTX's new contract with MELCO for ESSM Block 2?

RTX's Raytheon has been awarded a $250 million contract from MELCO for ESSM Block 2 licensed production in Japan.

What improvements does the ESSM Block 2 offer over Block 1?

ESSM Block 2 features increased maneuverability, reduced dependence on shipboard illumination, improved performance in marine environments, and software upgrade capability for evolving threats.

How will the RTX-MELCO contract benefit Japan's defense capabilities?

The contract will enhance Japan's domestic defense manufacturing and missile defense capabilities while strengthening the U.S.-Japan security partnership.

How long has RTX's Raytheon been partnering with MELCO?

Raytheon and MELCO have maintained a longstanding partnership spanning over 50 years on critical defense programs.