Raytheon's SM-3 IB interceptor business has won a contract valued at up to $6.3 billion over five years, with two additional option years. The award gives RRTX a multiyear production commitment in missile defense and adds a sizable defense-program backlog.
Raytheon, an RTX business, secured a five-year contract valued at up to $6.3 billion for production of SM-3 Block IB interceptors, according to the Oct. 8 announcement from Arlington, Virginia. The agreement also includes two additional option years, extending the potential production horizon beyond the base term.
The award is framed as providing long-term production stability for the missile-defense program. Its value is stated as a maximum contract amount, so the final revenue recognized by RTX will depend on exercised options, delivery schedules and the pace of production.
The contract touches RTX through Raytheon’s defense business and the SM-3 interceptor production line. RTX reported $88.6 billion of fiscal 2025 revenue, making the award material to a named program but not equivalent to a company-wide revenue update.
The open variables are the value of exercised options, annual deliveries and the timing of revenue recognition. Further contract activity, production milestones and RTX’s subsequent financial reporting will show how much of the potential award converts into reported sales.
Our take
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Our read · Oct 8
Raytheon, RTX’s defense unit, secured a five-year SM-3 IB interceptor contract worth up to $6.3 billion.
Why
The award adds multiyear visibility to RTX’s defense backlog, with the contract’s potential value equal to a meaningful portion of the company’s $88.6 billion fiscal 2025 revenue base. The key determinant is conversion from the maximum award into deliveries and recognized sales, which RTX’s next quarterly results can begin to clarify.
What could change this view
The contract’s $6.3 billion value is a ceiling that includes two option years, so slower production, unexercised options or delayed deliveries could reduce the near-term revenue contribution.
▲ The case it holds
A five-year production commitment for SM-3 IB interceptors provides RTX with unusually long program visibility against a $88.6 billion revenue base.
▼ The case it breaks
The contract value is maximum potential rather than guaranteed near-term revenue, and its contribution may be modest relative to RTX’s overall scale.
Reported by PR Newswire as RTX's Raytheon awarded $6.3 billion multi-year contract for SM-3 IB interceptors, . Who answers for this
Prices: 1D EOD · OCT 9 CLOSE, licensed end-of-day data.
Source: PR Newswire · Published here THU, OCT 8 · 5:14 PM ET · 2 reports · 2 publishers in this record · How this is decided →
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