U.S. Navy expands SM-3 interceptor production via Raytheon and Boeing contracts

The U.S. Navy is expanding its ballistic missile defense capabilities through new production agreements for the Standard Missile-3 (SM-3) interceptor. Raytheon, an RTX business, has received a $745 million contract from the Missile Defense Agency (MDA) to produce and support SM-3 Block IIA interceptors used on Aegis-equipped warships.

Boeing has also entered into seven-year framework agreements with the Department of Defense and Raytheon to increase the production of critical hardware, including avionics and ejector assemblies for both the Block IB and Block IIA variants. This effort aims to bolster the production levels required to counter ballistic missile threats.

The SM-3 Block IIA features larger rocket motors to provide increased acceleration, range, and coverage. Unlike traditional missiles, it uses a kinetic destruction vehicle to intercept targets through direct impact outside of Earth’s atmosphere. These interceptors are intended to protect aircraft carrier groups, advanced bases, Guam, and allied territories from short, medium, and long-range ballistic missiles.