RTX's Raytheon awarded $6.3 billion multi-year contract for SM-3 IB interceptors

A five-year base term and two additional option years establish a multi-year framework for interceptor production and sustainment.

Rhea-AI Summary

RTX (RTX) business Raytheon secured a contract valued up to $6.3 billion to produce and sustain SM-3 Block IB interceptors. The agreement has a five-year term and two additional option years, and forms part of recent agreements between Raytheon and the Department of War.

The contract supports replenishment of missile defense inventory. RTX has invested to expand capacity and accelerate production of critical munitions, including the Standard Missile family. Production under this contract will be primarily completed at Raytheon facilities in Tucson, Arizona, and Huntsville, Alabama.

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• Moderate pointProduction and sustainment contract valued up to $6.3 billion secures a five-year term for Raytheon. 2.6% of market cap
• Minor pointRTX has invested to expand capacity and accelerate production of critical munitions, including Standard Missiles.

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Contract provides long-term production stability for critical missile defense capability

ARLINGTON, Va., Oct. 8, 2026 /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, has secured a five-year contract, with two additional option years, valued up to $6.3 billion for the production and sustainment of Standard Missile-3 Block IB (SM‑3 IB) interceptors.

The contract, which is part of the recent landmark agreements between Raytheon and the Department of War, supports urgent replenishment of missile defense inventory that has been successfully used in combat and remains central to protecting U.S. forces, allies and critical infrastructure.

"This award underscores Raytheon's commitment to increasing production of critical munitions, ensuring our customers have the defensive capabilities they need, when they need them," said Raytheon President Phil Jasper. "SM-3 Block IB has proven its relevance in combat and this contract helps ensure we can replenish inventories and keep pace with the evolving threats the U.S. Navy, MDA and their partners face around the world."

RTX has made significant investments to expand capacity and accelerate production of critical munitions including the Standard Missile Family. Production under this contract will be primarily completed at Raytheon facilities in Tucson, Ariz. and Huntsville, Ala.

SM‑3 IB is a ship‑ and land‑based missile defense interceptor designed to defeat short‑ to intermediate‑range ballistic missiles during the midcourse phase of flight. It was first used in combat in 2024 and is an integral part of the U.S. Navy's extended-range integrated air and missile defense together with SM-3 IIA and the rest of the Standard Missile family.

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
With more than 180,000 global employees, we push the limits of technology and science to redefine how we connect and protect our world. With industry-leading capabilities, we advance aviation, engineer integrated defense systems for operational success, and develop next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2025 sales of more than $88 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-6-3-billion-multi-year-contract-for-sm-3-ib-interceptors-302903018.html

SOURCE RTX

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How much is RTX's Raytheon SM-3 Block IB contract worth, and how long does it last?

The contract is valued up to $6.3 billion and has a five-year term with two additional option years. It covers production and sustainment of Standard Missile-3 Block IB interceptors.