RTX’s Raytheon wins $745 million SM-3 IIA interceptor contract

Raytheon, an RTX business, has won a $745.387 million noncompetitive contract action to manufacture and assemble Standard Missile-3 Block IIA all-up rounds for the U.S. government and Japan’s Ministry of Defense. The undefinitized award covers work for the missile defence programme through a Foreign Military Sales case, with production split between Tucson, Arizona, and Huntsville, Alabama.

The Missile Defense Agency is the contracting authority for the deal, which runs to 28 February 2031. Immediate funding includes $275.6 million from FY2026 procurement accounts and $277.7 million from Japan FMS funds, supporting the start of the production run while final terms are completed.

SM-3 Block IIA is a jointly developed U.S.-Japan exo-atmospheric interceptor used in Aegis-based ballistic missile defence. The notice did not specify missile quantity, and the undefinitized structure leaves room for later adjustment to the final value and scope. The award continues Raytheon’s role in the interceptor supply chain and sustains production for a system central to U.S.-Japan defence cooperation.