Raytheon in Tucson wins $2 billion missile contract as RTX raises full-year guidance

Tucson-based missiles and defense products manufacturer Raytheon has won a nearly $2 billion contract that will supply the Japanese military as well as U.S. forces.

The contract with the U.S. Missile Defense Agency for $1,944,082,765 call for the manufacture and assembly of Standard Missile-3 (SM-3) Block IIA All-Up Rounds, with work to be performed in Tucson and Alabama and completed by February 2031.

The SM-3 interceptor is described by Raytheon as a defensive weapon that destroys short- to intermediate-range ballistic missiles using sheer force rather than explosive warheads. Its “kill vehicle” collides with threats with the force of a 10-ton truck traveling 600 mph. Raytheon is Arizona’s largest defense contractor ranked by the value of contracts awarded during fiscal 2023, according to Business Journal research.

The contract was announced Thursday by the Defense Department on the same day that defense contractor RTX Corp, Raytheon’s Virginia-based parent company, released its second-quarter earnings report showing stronger-than-expected sales for its latest quarter, even as several one-time expenses ate into its profits.

This story is posted in partnership with Phoenix Business Journal. Click to read the full story.