Pentagon reaches SM-3 production agreements with Boeing and RTX

The agreements cover avionics and ejector assemblies supplied by Boeing to Raytheon, an RTX business, for the SM-3 Block IB and SM-3 Block IIA. Both variants operate with the Aegis Ballistic Missile Defense System and are designed to intercept ballistic missiles outside the atmosphere.

The arrangements allow Boeing to begin manufacturing components before a production contract is formally in place, while the companies and the Department of War negotiate a multiyear agreement. Financial terms and production quantities have not been disclosed.

The Pentagon said the agreements are intended to stabilise supply chains and give suppliers greater confidence to invest in additional manufacturing capacity.

They follow a similar seven-year framework agreed with Boeing in April to expand production of PAC-3 Missile Segment Enhancement seekers.

Earlier this month, the Missile Defense Agency awarded Raytheon a $745 million contract to produce fully assembled SM-3 Block IIA interceptors for the United States and Japan.

Demand for the interceptor has increased following its operational use by US Navy destroyers against Iranian ballistic missiles targeting Israel in April 2024. The SM-3 inventory was estimated at 414 missiles in December 2025 by the Center for Strategic and International Studies, which has warned that replenishing stocks could take years.

Congress has also intervened to keep the lower-cost SM-3 Block IB production line open after the Missile Defense Agency proposed ending new purchases in its fiscal 2025 budget request.

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