TLDR
- Raytheon secured two U.S. military contracts worth a combined $1.3 billion, announced Friday by the Department of Defense.
- The larger deal is a $745.4 million contract to manufacture Standard Missile-3 Block IIA All-Up Rounds for the U.S. and Japan.
- The second is a $536 million modification to an existing TOW Weapon System contract, bringing its total value to $750.8 million.
- The SM-3 contract was awarded by the Missile Defense Agency and obligates over $553 million in funds at time of award.
- Work will be performed in Tucson, Arizona and Huntsville, Alabama across both contracts.
RTX stock was down 0.10% on the day as the Department of Defense announced the two new contracts on Friday.
The first contract, valued at $745.4 million, covers the manufacture and assembly of Standard Missile-3 Block IIA All-Up Rounds. The award supports both U.S. government requirements and Japan Ministry of Defense foreign military sales.
The Missile Defense Agency in Huntsville, Alabama issued the noncompetitive, undefinitized contract. At the time of award, it obligated $275.6 million in fiscal 2026 procurement funds and $277.7 million in Japan Ministry of Defense foreign military sales funds.
Boom.
Voyager awarded massive Raytheon SM-3 contract!
“Our propulsion technology adds to the nation’s missile defense architecture, enabling higher precision, greater reliability and safer operation than legacy systems,”
– Matt Magaña, president, Space, Defense & National… pic.twitter.com/Z3jQ2MdCPP
— Wealthmatica (@wealthmatica) August 6, 2026
That is over $553 million committed upfront on the SM-3 deal alone.
Work will be split between Tucson, Arizona and Huntsville, Alabama. The estimated completion date on this contract is Feb. 28, 2031.
TOW Weapon System Gets a $536 Million Boost
The second award is a $536 million modification to an existing contract for the TOW Weapon System. The modification covers full rate production and engineering services.
Army Contracting Command at Redstone Arsenal, Alabama issued the modification. It obligates $54.9 million in fiscal 2026 other procurement Army funds at time of award.
With this modification, the total cumulative value of the TOW contract rises to $750.8 million. Work will be performed in Tucson, Arizona with a completion date of Aug. 31, 2027.
The TOW Weapon System is a long-standing anti-armor guided missile system used widely by U.S. forces and allied nations.
Two Contracts, One Defense Giant
Between the two awards, Raytheon is looking at a combined $1.3 billion in new and extended contract value. That is a solid day by any measure.
The SM-3 Block IIA is a key component of ballistic missile defense. The Japan component of the deal reflects the ongoing U.S.-Japan defense cooperation framework, which has been expanding in recent years.
Both contracts are noncompetitive in nature, meaning Raytheon was the sole awardee without an open bidding process.
The Missile Defense Agency confirmed the SM-3 contract base value at $745.9 million in a separate notice, slightly above the $745.4 million figure in the DoD announcement.
Fiscal 2026 funds are being used across both awards, with a mix of procurement and foreign military sales financing on the SM-3 side.
RTX stock closed down 0.10% on Friday.
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