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Industry · Missile production

US and Japan finalize plan to assemble AMRAAM in Japan, Breaking Defense reports

Japan's defense minister outlined plans for missile assembly in Japan and technical information sharing to increase SM-3 Block IIA production, Breaking Defense reports.

Japan and the United States have finalized a plan to assemble the Advanced Medium-Range Air-to-Air Missile (AMRAAM) in Japan, Breaking Defense reported, citing Japanese Defense Minister Shinjiro Koizumi. Koizumi discussed the agreement at a Wednesday press conference.1

The US and Japan finalized a plan to assemble AMRAAM in Japan

According to Japanese Defense Minister Shinjiro Koizumi

AMRAAMplan to assemble AMRAAM in Japanplanned

a plan to assemble the Advanced Medium-Range Air-to-Air Missile (AMRAAM) in Japan

Standard Missile-3 Block IIAshare technical informationplanned

agreed to share technical information to increase SM-3 Block IIA production

Reported by Breaking Defense

Sources
TGOs tgos.io

The agreement covers a final assembly and inspection facility, according to the outlet's Google translation of remarks posted by Japan's Defense Ministry. Koizumi did not identify the Japanese industry partner, the facility's opening timeline or its expected output.1

Also announced

The countries agreed to share technical information needed to increase production of the Standard Missile-3 Block IIA, a primarily ship-based ballistic missile interceptor, Breaking Defense reported, citing Koizumi. The interceptor is a joint US-Japan program; he did not specify how much production might rise.1

Koizumi said the AMRAAM agreement would help supply equipment needed by both countries and strengthen Japan's defense industry base, Breaking Defense reported. He described both agreements as part of Operation Supercharge, a joint effort on defense technology cooperation.1

Sources (1)
  1. Breaking Defense: US, Japan reach agreements for AMRAAM assembly, SM-3 production boost: Japanese MoD breakingdefense.com
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Industry · Primes

RTX's defense backlog grows $45 billion in a quarter

Defense reached about 48% of RTX's backlog in the third quarter, up from about 41% in the second. RTX also raised its 2026 adjusted sales outlook.

RTX's defense backlog rose $45 billion to $164 billion in the third quarter of 2026.1–2 Commercial backlog increased $6 billion.1

RTX's defense backlog rose far more than its commercial backlog

Company-wide backlog change, Q2 to Q3 2026; USD billion

Defense+$45B
Commercial+$6B

Net changes between reported quarterly backlog balances.

Source: RTX Q2 and Q3 2026 results. As of Oct. 20, 2026.

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The increase shifted the company's backlog mix toward defense, which accounted for about 48% of the total, compared with about 41% in the second quarter.1–2

RTX received Tomahawk and AMRAAM multi-year undefinitized production contracts during the quarter. Its results release did not disclose their values, leaving their contribution to the defense backlog increase unspecified. Chief executive Chris Calio cited more than $81 billion in new awards across commercial and defense combined.1

RTX raised its full-year adjusted sales outlook to $97.0 billion to $97.5 billion, following an increase in July.1–2 It also raised its 2026 organic sales growth forecast to 10% to 11%.1

The company-wide defense backlog expansion accompanied slower reported sales growth at Raytheon: the segment's third-quarter sales grew 14% year over year on both a reported and organic basis.1–2 Reported year-over-year growth was 18% in the second quarter.2 RTX attributed the third-quarter sales increase to higher volume on naval programs and land and air defense systems, including Patriot, Standard Missile and Tomahawk.1

Sources (2)
  1. RTX Reports Q3 2026 Results, Oct. 20, 2026 www.rtx.com
  2. RTX Reports Q2 2026 Results, July 23, 2026 www.rtx.com
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Contracts · Missile defense

Missile Defense Agency awards Raytheon multiyear SM-3 IB contract worth up to $6.3 billion

The Missile Defense Agency award carries a $4.4 billion base value. It is undefinitized, so work can begin before terms, specifications or price are agreed.

The Missile Defense Agency awarded Raytheon a noncompetitive, multiyear contract on Oct. 7 to manufacture and assemble Standard Missile-3 Block IB interceptors, with a total value of $6.3 billion including options.2 RTX says the award is part of Raytheon's recent agreements with the Department of War and supports urgent replenishment of an interceptor first used in combat in 2024.3

Raytheon will manufacture and assemble SM-3 Block IB All-Up-Rounds

The Missile Defense Agency is the contracting activity; the contract was awarded Oct. 7, 2026

obligated on the award$454,215,132actual

Awarded on Oct. 7, 2026

base value$4,432,040,944actual

noncompetitive, multi-year undefinitized contract action

total value, including options$6,342,404,516contingent

five-year contract, with two additional option years, valued up to $6.3 billion

RTX says the contract is part of the recent agreements between Raytheon and the department

DFARS defines an undefinitized contract action as one whose terms, specifications or price are not agreed before performance begins

Source: Department of War contract announcement and release, Oct. 8, 2026; RTX release, Oct. 8, 2026; DFARS 217.7401. Data as of Oct. 8, 2026.

Sources
TGOs tgos.io

That link runs back to February. Breaking Defense reported that the department and Raytheon signed a framework agreement in February designed to pave the way for this multiyear deal, and that under the agreements Raytheon would accelerate SM-3 IB production.4–5 RTX said at the time that the agreements would span up to seven years once contracts were finalized, according to Breaking Defense.5 With both option years, this contract's five-plus-two-year span reaches that outer bound.1

The department's case for the contract runs through the suppliers beneath Raytheon. It says the deal forces capital allocation "directly into assembly lines, solid-rocket motor suppliers, and critical domestic sub-tier vendors." Michael Duffey, the Under Secretary of War for Acquisition and Sustainment, said it "breaks sub-tier manufacturing bottlenecks."1

As an undefinitized contract action, the award authorizes Raytheon to begin work immediately in Tucson, Ariz., and Huntsville, Ala.1 Neither the department's announcements nor Raytheon's said how many missiles the contract buys.1–3

The milestone to watch is definitization, the agreement on or determination of terms, specifications and price that converts the award into a definitive contract.6 At award, $454 million in fiscal 2026 procurement funds was obligated against the $4.4 billion base. Funding actions on contract HQ0851-27-C-E001 will show the pace of any further obligations.2

Sources (6)
  1. Department of War: Department of War Awards $6.3 Billion Multi-Year Contract to RTX's Raytheon for SM-3 BLOCK IB Interceptors (Oct. 8, 2026) www.war.gov
  2. Department of War: Contracts for Oct. 8, 2026 www.war.gov
  3. RTX: RTX's Raytheon awarded $6.3 billion multi-year contract for SM-3 IB interceptors (Oct. 8, 2026) www.rtx.com
  4. Breaking Defense: Pentagon, Raytheon ink up to $6.3 billion multi-year contract for SM-3 IB missiles (Oct. 8, 2026) breakingdefense.com
  5. Breaking Defense: RTX to ramp up production of five weapons in new deal with Pentagon (Feb. 4, 2026) breakingdefense.com
  6. DFARS 217.7401, Definitions www.acquisition.gov
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