Raytheon, a business unit of RTX (NYSE: RTX), has been awarded a contract valued at up to $6.3 billion for the production and sustainment of Standard Missile-3 Block IB (SM-3 IB) interceptors, according to a company press release.

The contract spans five years with two additional option years. Production will be carried out primarily at Raytheon facilities in Tucson, Ariz., and Huntsville, Ala.

The award is part of a series of agreements between Raytheon and the Department of War and is intended to support replenishment of missile defense inventory. The SM-3 IB is a ship- and land-based interceptor designed to defeat short- to intermediate-range ballistic missiles during the midcourse phase of flight. It was first used in combat in 2024.

Raytheon President Phil Jasper said in a statement: "SM-3 Block IB has proven its relevance in combat and this contract helps ensure we can replenish inventories and keep pace with the evolving threats the U.S. Navy, MDA and their partners face around the world."

The SM-3 IB operates as part of the U.S. Navy's extended-range integrated air and missile defense system alongside the SM-3 IIA and other missiles in the Standard Missile family. RTX reported 2025 sales of more than $88 billion and employs more than 180,000 people globally.