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RTX's Raytheon SM-3® Block IIA achieves full-rate production approval

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Raytheon, an RTX business, has achieved full-rate production approval for its Standard Missile-3 Block IIA (SM-3 Block IIA). This milestone marks the first Missile Defense Agency cooperative development program with Japan to reach this stage. The approval led to a $1.9 billion award from the U.S. Missile Defense Agency in July 2024 for producing rounds for both the U.S. government and Japan Ministry of Defense.

The SM-3 Block IIA, developed in cooperation between MDA, Japan Ministry of Defense, and their industry partners, features larger rocket motors and an enhanced kinetic warhead compared to its predecessors. This allows it to engage threats faster and protect larger regions from short- to intermediate-range ballistic missile threats. Work under this contract will be completed by February 2031 at Raytheon facilities in Tucson, Arizona, and Huntsville, Alabama.

Raytheon, un'azienda di RTX, ha ottenuto l' del suo Standard Missile-3 Block IIA (SM-3 Block IIA). Questo traguardo segna il primo programma di sviluppo cooperativo con l'Agenzia per la Difesa Missilistica degli Stati Uniti con il Giappone a raggiungere questa fase. L'approvazione ha portato a un finanziamento di 1,9 miliardi di dollari da parte dell'Agenzia per la Difesa Missilistica degli Stati Uniti nel luglio 2024 per la produzione di missili sia per il governo degli Stati Uniti che per il Ministero della Difesa giapponese.

Lo SM-3 Block IIA, sviluppato in collaborazione tra l'MDA, il Ministero della Difesa giapponese e i loro partner industriali, presenta motori a razzo più grandi e una testata cinetica migliorata rispetto ai suoi predecessori. Ciò consente di affrontare le minacce più rapidamente e proteggere aree più vaste dalle minacce dei missili balistici a corto e medio raggio. I lavori sotto questo contratto saranno completati entro febbraio 2031 presso gli stabilimenti di Raytheon a Tucson, Arizona, e Huntsville, Alabama.

Raytheon, una empresa de RTX, ha obtenido la aprobación para producción a plena escala de su Standard Missile-3 Block IIA (SM-3 Block IIA). Este hito marca el primer programa de desarrollo cooperativo de la Agencia de Defensa de Misiles con Japón que alcanza esta etapa. La aprobación condujo a un contrato de 1.9 mil millones de dólares por parte de la Agencia de Defensa de Misiles de EE.UU. en julio de 2024 para la producción de misiles tanto para el gobierno de EE.UU. como para el Ministerio de Defensa de Japón.

El SM-3 Block IIA, desarrollado en cooperación entre la MDA, el Ministerio de Defensa de Japón y sus socios industriales, cuenta con motores de cohete más grandes y una cabeza de guerra cinética mejorada en comparación con sus predecesores. Esto le permite hacer frente a las amenazas más rápidamente y proteger regiones más extensas de amenazas de misiles balísticos de corto a medio alcance. El trabajo bajo este contrato se completará para febrero de 2031 en las instalaciones de Raytheon en Tucson, Arizona, y Huntsville, Alabama.

Raytheon은 RTX의 사업부로, Standard Missile-3 Block IIA (SM-3 Block IIA)에 대한 전량 생산 승인을 획득했습니다. 이 이정표는 일본과의 첫 번째 미사일 방어국 협력 개발 프로그램이 이 단계에 도달한 것을 나타냅니다. 이 승인은 2024년 7월 미국 미사일 방어국으로부터 19억 달러의 계약을 이끌어 냈으며, 이는 미국 정부와 일본 방위성 모두를 위한 미사일 생산을 포함합니다.

SM-3 Block IIA는 MDA, 일본 방위성 및 그들의 산업 파트너 간의 협력을 통해 개발되었으며, 더 큰 로켓 모터와 향상된 운동 에너지 탄두를 특징으로 합니다. 이는 위협에 더 빠르게 대응할 수 있도록 하며, 단거리에서 중거리 탄도 미사일 위협으로부터 더 넓은 지역을 보호합니다. 이 계약에 따른 작업은 2031년 2월까지 애리조나주 투손과 앨라배마주 헌츠빌에 있는 Raytheon 시설에서 완료될 예정입니다.

Raytheon, une entreprise de RTX, a obtenu l'approbation pour la production à plein régime de son Standard Missile-3 Block IIA (SM-3 Block IIA). Cette étape marque le premier programme de développement coopératif de l'Agence de défense antimissile avec le Japon à atteindre ce niveau. L'approbation a conduit à un contrat de 1,9 milliard de dollars de l'Agence de défense antimissile des États-Unis en juillet 2024 pour la production de missiles pour le gouvernement américain ainsi que pour le ministère de la Défense japonais.

Le SM-3 Block IIA, développé en coopération avec la MDA, le ministère de la Défense japonais et leurs partenaires industriels, dispose de moteurs de fusée plus puissants et d'une ogive cinétique améliorée par rapport à ses prédécesseurs. Cela lui permet de répondre plus rapidement aux menaces et de protéger de plus grandes régions contre les menaces de missiles balistiques à courte et moyenne portée. Les travaux effectués dans le cadre de ce contrat seront terminés d'ici février 2031 dans les installations de Raytheon à Tucson, en Arizona, et à Huntsville, en Alabama.

Raytheon, ein Unternehmen von RTX, hat die Genehmigung für die Serienproduktion seines Standard Missile-3 Block IIA (SM-3 Block IIA) erreicht. Dieser Meilenstein markiert das erste kooperative Entwicklungsprogramm der Missile Defense Agency mit Japan, das diese Phase erreicht hat. Die Genehmigung führte zu einem Auftrag über 1,9 Milliarden Dollar von der US Missile Defense Agency im Juli 2024 zur Produktion von Raketen sowohl für die US-Regierung als auch für das japanische Verteidigungsministerium.

Der SM-3 Block IIA, der in Zusammenarbeit zwischen der MDA, dem japanischen Verteidigungsministerium und deren Industriepartnern entwickelt wurde, verfügt über größere Raketentriebwerke und einen verbesserten kinetischen Sprengkopf im Vergleich zu seinen Vorgängermodellen. Dies ermöglicht es ihm, Bedrohungen schneller zu bekämpfen und größere Regionen vor kurz- bis mittellangen ballistischen Raketenbedrohungen zu schützen. Die Arbeiten im Rahmen dieses Vertrages sollen bis Februar 2031 in den Raytheon-Anlagen in Tucson, Arizona, und Huntsville, Alabama, abgeschlossen sein.

Positive
  • Achieved full-rate production approval for SM-3 Block IIA
  • Secured a $1.9 billion contract from U.S. Missile Defense Agency
  • Expanded market to include both U.S. government and Japan Ministry of Defense
  • Demonstrated design maturity and reliability of the missile system
Negative
  • None.

Insights

The approval of full-rate production for Raytheon's SM-3 Block IIA missile is a significant milestone for RTX. This development signals strong market demand and design maturity, which are important factors for investors. The $1.9 billion contract from the U.S. Missile Defense Agency underscores the program's commercial viability and potential for sustained revenue.

The international collaboration with Japan adds strategic value, potentially opening doors for further global partnerships and market expansion. The extended contract duration until 2031 provides long-term revenue visibility, a key consideration for stability in the defense sector.

Investors should note that this achievement may positively impact RTX's Naval Power segment, potentially driving growth in the coming years. However, it's important to consider that geopolitical factors and defense budget allocations can influence future demand for such systems.

The full-rate production approval for the SM-3 Block IIA missile is financially significant for RTX. The $1.9 billion contract represents a substantial revenue stream, likely to positively impact the company's top line over the next several years. This development could enhance RTX's market position in the missile defense sector.

Investors should consider the potential for improved profit margins as the program moves from development to full-rate production, typically associated with economies of scale and manufacturing efficiencies. The long-term nature of the contract, extending to 2031, provides stable cash flow projections, which is favorable for financial planning and investor confidence.

While this news is positive, it's important to assess its impact in the context of RTX's overall $166.65 billion market cap and diverse portfolio. The program's success could serve as a catalyst for similar high-value, long-term contracts in the future.

This marks the first Missile Defense Agency cooperative development program with Japan to reach this milestone

TUCSON, Ariz., Oct. 15, 2024 /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, has entered full-rate production for Standard Missile-3 Block IIA, validating the program's design maturity amid increased demand for the product from the United States and allied partners.

The SM-3 Block IIA production milestone cleared the way for a $1.9 billion award from the U.S. Missile Defense Agency in July 2024 to produce rounds for both the U.S. government and Japan Ministry of Defense.

Full-rate production signals that there is no elevated design or manufacturing risk in the missile and validates its reliability and performance.

"SM-3 Block IIA is a testament to the continuing partnership with Japanese industry to mature ballistic missile defense capabilities for the defense of our nation and our allies around the globe," said Barbara Borgonovi, president of Naval Power at Raytheon. "This milestone indicates that the team has achieved full maturity in the missile's design which leads to greater efficiencies throughout the program."

SM-3 Block IIA, created in a landmark cooperative development program between MDA, Japan Ministry of Defense and their industry partners (Raytheon and Japanese industry), is the first MDA-procured program of its kind to achieve this manufacturing milestone. SM-3 Block IIA features larger rocket motors and an enhanced kinetic warhead compared to its predecessors, allowing it to engage threats faster and protect larger regions from short- to intermediate-range ballistic missile threats.

Work under this contract will be done at Raytheon facilities in Tucson, Ariz.; and Huntsville, Ala., with completion by February 2031.

About Raytheon

Raytheon, an RTX business, is a leading provider of defense solutions to help the U.S. government, our allies and partners defend their national sovereignty and ensure their security. For more than 100 years, Raytheon has developed new technologies and enhanced existing capabilities in integrated air and missile defense, smart weapons, missiles, advanced sensors and radars, interceptors, space-based systems, hypersonics and missile defense across land, air, sea and space.

About RTX

With more than 185,000 global employees, RTX pushes the limits of technology and science to redefine how we connect and protect our world. Through industry-leading businesses – Collins Aerospace, Pratt & Whitney, and Raytheon – we are advancing aviation, engineering integrated defense systems, and developing next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2023 sales of $69 billion, is headquartered in Arlington, Virginia.

For questions or to schedule an interview, please contact corporatepr@rtx.com

 

Cision View original content:https://www.prnewswire.com/news-releases/rtxs-raytheon-sm-3-block-iia-achieves-full-rate-production-approval-302276277.html

SOURCE RTX

FAQ

What milestone did RTX's Raytheon achieve for the SM-3 Block IIA missile?

Raytheon, an RTX business, achieved full-rate production approval for the Standard Missile-3 Block IIA (SM-3 Block IIA).

What is the value of the contract awarded to RTX for SM-3 Block IIA production?

RTX received a $1.9 billion award from the U.S. Missile Defense Agency in July 2024 for SM-3 Block IIA production.

When is the expected completion date for the SM-3 Block IIA contract work for RTX?

The contract work for RTX's SM-3 Block IIA is expected to be completed by February 2031.

What are the key improvements in RTX's SM-3 Block IIA compared to its predecessors?

RTX's SM-3 Block IIA features larger rocket motors and an enhanced kinetic warhead, allowing it to engage threats faster and protect larger regions from short- to intermediate-range ballistic missile threats.

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