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

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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.

RTX (NYSE: RTX), attraverso la sua controllata Raytheon, ha ottenuto un contratto da 250 milioni di dollari da Mitsubishi Electric Corporation (MELCO) per la produzione con licenza dell'ESSM Block 2. Il contratto di vendita commerciale diretta prevede la fornitura di kit missilistici, parti, componenti e supporto tecnico per la produzione dei missili in Giappone.

L'ESSM Block 2 è un missile guidato lanciato da nave, avanzato e dotato di maggiore manovrabilità e prestazioni rispetto al Block 1. I miglioramenti principali includono una minore dipendenza dall'illuminazione a bordo nave, compatibilità con diversi sistemi di combattimento, migliori prestazioni in ambienti marini e la possibilità di aggiornamenti software per adattarsi a minacce future.

RTX (NYSE: RTX), a través de su filial Raytheon, ha asegurado un contrato de 250 millones de dólares con Mitsubishi Electric Corporation (MELCO) para la producción bajo licencia del ESSM Block 2. El contrato de Venta Comercial Directa incluye el suministro de kits de misiles, piezas, componentes y soporte técnico para la producción de misiles en Japón.

El ESSM Block 2 es un misil guiado lanzado desde buques, avanzado y con mejor maniobrabilidad y rendimiento en comparación con el Block 1. Las mejoras clave incluyen menor dependencia de la iluminación a bordo, compatibilidad con varios sistemas de combate, mejor desempeño en ambientes marinos y capacidad de actualización de software para adaptarse a amenazas futuras.

RTX (NYSE: RTX) 자회사인 Raytheon은 Mitsubishi Electric Corporation(MELCO)으로부터 ESSM Block 2의 라이선스 생산을 위한 2억 5천만 달러 계약을 체결했습니다. 본 직접 상업 판매 계약은 일본 내 미사일 생산을 위한 미사일 키트, 부품, 구성품 및 기술 지원 제공을 포함합니다.

ESSM Block 2는 선박 발사형 고급 유도 미사일로, Block 1에 비해 기동성과 성능이 향상되었습니다. 주요 개선점으로는 함상 조명 의존도 감소, 다양한 전투 시스템과의 호환성, 해양 환경에서의 향상된 성능, 미래 위협에 대응할 수 있는 소프트웨어 업그레이드 기능이 있습니다.

RTX (NYSE: RTX), par l'intermédiaire de sa filiale Raytheon, a obtenu un contrat de 250 millions de dollars auprès de Mitsubishi Electric Corporation (MELCO) pour la production sous licence de l'ESSM Block 2. Le contrat de vente commerciale directe comprend la fourniture de kits de missiles, pièces, composants et support technique pour la production de missiles au Japon.

L'ESSM Block 2 est un missile guidé lancé depuis un navire, avancé, avec une maniabilité et des performances améliorées par rapport au Block 1. Les principales améliorations incluent une moindre dépendance à l'éclairage embarqué, la compatibilité avec divers systèmes de combat, de meilleures performances en milieu marin et la capacité de mise à jour logicielle pour s'adapter aux menaces futures.

RTX (NYSE: RTX)-Tochterunternehmen Raytheon hat einen 250-Millionen-Dollar-Vertrag mit Mitsubishi Electric Corporation (MELCO) für die lizenzierte Produktion des ESSM Block 2 gesichert. Der Direktverkaufsvertrag umfasst die Lieferung von Raketensätzen, Teilen, Komponenten und technischem Support für die Raketenproduktion in Japan.

Das ESSM Block 2 ist eine fortschrittliche, schiffsgestützte Lenkwaffe mit verbesserter Manövrierfähigkeit und Leistung im Vergleich zum Block 1. Wichtige Verbesserungen sind eine geringere Abhängigkeit von der Schiffsbeleuchtung, Kompatibilität mit verschiedenen Kampfsystemen, bessere Leistung in maritimer Umgebung und die Möglichkeit von Software-Updates zur Anpassung an zukünftige Bedrohungen.

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.

Insights

RTX secures $250M contract with MELCO for ESSM Block 2 production, strengthening long-term Japan partnership and defense capabilities.

This $250 million contract between Raytheon and MELCO represents a strategic milestone in defense collaboration between the US and Japan. The agreement includes Raytheon providing missile kits, components, and technical support for domestic production in Japan, significantly enhancing Japan's indigenous defense manufacturing capabilities.

The ESSM (Evolved SeaSparrow Missile) Block 2 represents a critical upgrade over its predecessor with dual-mode guidance systems and improved maneuverability. These technical enhancements reduce dependence on shipboard illumination systems while improving performance in challenging marine environments—a crucial advantage for Japan's maritime defense posture.

What makes this deal particularly significant is its continuation of a 50+ year partnership between Raytheon and MELCO. Licensed production arrangements like this one create long-term revenue streams beyond the initial contract value through ongoing technical support, maintenance requirements, and potential future upgrades. For RTX shareholders, this represents the type of steady, high-margin defense contract that provides stability to the company's revenue base.

Japan's investment signals increased defense spending priorities among key US allies in the Indo-Pacific region, potentially creating additional opportunities for RTX's naval systems portfolio. As a member of the 12-nation NATO SEASPARROW Consortium, this contract also reinforces RTX's position within multilateral defense frameworks that tend to generate follow-on business across multiple countries.

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.

 

Cision 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.
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