Raytheon, an RTX (NYSE: RTX) business, has successfully moved its Standard Missile-3 (SM-3) Block IIA into full-rate production, marking a significant validation of the missile's design and performance. This step comes as demand grows from the U.S. government and allied nations.
This production milestone follows a $1.9 billion contract awarded in July 2024 by the U.S. Missile Defense Agency (MDA). The contract covers the production of SM-3 Block IIA rounds for both the U.S. and Japan's Ministry of Defense.
The full-rate production designation confirms that the missile is free from any elevated design or manufacturing risks, ensuring its reliability and readiness for deployment.
"SM-3 Block IIA is a testament to the continuing partnership with Japanese industry to mature ballistic missile defense capabilities for the defense of our nation and our allies around the globe," said Barbara Borgonovi, president of Naval Power at Raytheon. "This milestone indicates that the team has achieved full maturity in the missile's design which leads to greater efficiencies throughout the program."
SM-3 Block IIA was developed through a cooperative effort between MDA, the Japan Ministry of Defense, Raytheon, and Japanese industry partners. It is the first MDA-procured program to reach this production milestone. The missile features enhanced rocket motors and an upgraded kinetic warhead, improving its ability to neutralize threats more quickly and cover larger regions against short- to intermediate-range ballistic missiles.
Work under the contract will be performed at Raytheon facilities in Tucson, Arizona, and Huntsville, Alabama, and is expected to be completed by February 2031.
