RTX's Raytheon Wins $6.3B Contract for SM-3 IB Interceptors

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Raytheon, an 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.