Raytheon secures $745m contract for US-Japan SM-3 Block IIA interceptors

Published Aug 10, 04:00 PM UTC

Raytheon, an RTX business, has been awarded a $745.39 million contract by the US Department of War to manufacture and assemble Standard Missile-3 (SM-3) Block IIA interceptors for the US government and Japan's Ministry of Defense. The contract, awarded on a noncompetitive basis, covers All-Up Rounds for both US and Japanese Foreign Military Sales requirements. The SM-3 Block IIA is a joint US-Japan development designed to intercept short- to intermediate-range ballistic missiles using a hit-to-kill kinetic warhead. Work will be performed in Tucson, Arizona, and Huntsville, Alabama, with completion expected by February 2031. Immediate funding includes $275.61 million from US fiscal 2026 procurement funds and $277.69 million from Japanese FMS funds. The Missile Defense Agency oversees the project. Raytheon reached full-rate production of the Block IIA variant in October 2024. Over 400 SM-3 interceptors have been delivered, with more than 30 successful intercepts in space. This contract follows a $2 billion award in 2024 for similar work.