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Market Signal: Missile Defense

Who supplies SM-3 Block IB? Inside Raytheon's new $6.3 billion production contract

Published October 14, 2026 / SM-3 Block IB supply chain

Raytheon has received a contract valued at up to $6.3 billion for the production and sustainment of SM-3 Block IB interceptors.

The five-year contract, with two additional option years, follows a reversal of earlier plans to end new Block IB procurement after FY2024.

23

interceptors added

March 2026 production modification

78

interceptors under the preceding contract

After the March 2026 addition

$6.3B

new contract ceiling

Five years plus two option years

The preceding Block IB supplier network

Three interceptor contracts / FY2019-FY2026

New Block IB orders resumed in 2025. In March 2026, the Missile Defense Agency added 23 interceptors to an existing contract, bringing the total to 78, and funded one-time production-line restart costs.

Mimir's FY2019-FY2026 data identifies 147 distinct first-tier supplier sites across three preceding SM-3 Block IB interceptor contracts, representing approximately $800 million in mapped subcontract awards.

147
first-tier supplier sites
~$800M
mapped subcontract awards
~82%
through the ten largest sites

Where the mapped value flowed

Share of mapped first-tier subcontract award value

Boeing

Huntsville, Alabama

Avionics, cable assemblies and major electromechanical assemblies

~53%

Northrop Grumman

Woodland Hills, California

Inertial measurement and reference units

~7.5%

L3Harris Aerojet Rocketdyne

East Camden, Arkansas

Rocket motors

~6%

Magellan Aerospace

Middletown, Ohio

Fins, wings and boattails

~4%

Standex International

New Berlin, Wisconsin

Complex forming and radome assemblies

~3%

The five largest supplier sites accounted for approximately 74% of mapped first-tier subcontract value.

Boeing's position beneath Raytheon

Boeing's Huntsville operation appeared beneath all three preceding Block IB contracts and accounted for more than half of the mapped value.

In August 2026, Boeing announced seven-year agreements with the government and Raytheon to increase production of SM-3 avionics and ejector assemblies across the Block IB and Block IIA variants.

The new Raytheon contract therefore provides a longer demand horizon for an established but highly concentrated supplier network. Much of the ramp will pass through a relatively small group of operations already producing the interceptor's avionics, propulsion, navigation equipment, structures and energetic components.

Sources and notes

RTX multi-year contract announcement, March 2026 Missile Defense Agency contract announcement, Department of War SM-3 production-framework announcement, Boeing SM-3 production-framework announcement, USAspending, FPDS and Mimir Data Platform and Modeling.

Mimir analysis covers mapped first-tier subcontract awards across three preceding SM-3 Block IB all-up-round contracts, FY2019-FY2026. Supplier sites are distinct CAGE-defined operations. Percentages refer to shares of the mapped first-tier subcontract award value after applying Mimir's subcontract de-duplication logic. They do not represent shares of total prime-contract value. Figures are rounded.

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