On August 14, the Pentagon announced framework agreements with The Boeing Company (NYSE:BA) and RTX Corporation (NYSE:RTX) to increase component production for the SM-3 Block IIA and SM-3 Block IB interceptors. Both agreements are intended to increase the output of a group of ship-fired, surface-to-air interceptors that serve as the foundation for the Aegis Ballistic Missile Defense System, the sea-based shield used by the US Navy to intercept ballistic missiles.
The announcement had little impact on the shares of both companies, with The Boeing Company (NYSE:BA) down around 0.4% and RTX Corporation (NYSE:RTX) down about 1% during the day.
RTX Corporation (NYSE:RTX) alone inked five separate Pentagon deals earlier this year to greatly boost output of Tomahawk cruise missiles, AMRAAM air-to-air missiles, and the Standard Missile family, with Tomahawk production expected to increase sixteenfold, from approximately 60 to 1,000 units per year.
Congress has provided financial support for the effort. The 2026 defense spending bill provided multiyear procurement authority for eight critical munitions and more than $6.3 billion for 13 critical munitions, while the Pentagon's fiscal 2027 budget request calls for roughly $95 billion in missile procurement.
Rising tensions with Iran have added urgency to rebuild US missile inventories. During the June 2025 12-day Israel-Iran war, US forces reportedly used more than 150 THAAD interceptors. This highlights the pressure that sustained conflict can place on American missile-defense stockpiles.
#missile #corporation #missiles #pentagon
The announcement had little impact on the shares of both companies, with The Boeing Company (NYSE:BA) down around 0.4% and RTX Corporation (NYSE:RTX) down about 1% during the day.
RTX Corporation (NYSE:RTX) alone inked five separate Pentagon deals earlier this year to greatly boost output of Tomahawk cruise missiles, AMRAAM air-to-air missiles, and the Standard Missile family, with Tomahawk production expected to increase sixteenfold, from approximately 60 to 1,000 units per year.
Congress has provided financial support for the effort. The 2026 defense spending bill provided multiyear procurement authority for eight critical munitions and more than $6.3 billion for 13 critical munitions, while the Pentagon's fiscal 2027 budget request calls for roughly $95 billion in missile procurement.
Rising tensions with Iran have added urgency to rebuild US missile inventories. During the June 2025 12-day Israel-Iran war, US forces reportedly used more than 150 THAAD interceptors. This highlights the pressure that sustained conflict can place on American missile-defense stockpiles.
#missile #corporation #missiles #pentagon
3 hours ago
