The Boeing Company (NYSE:BA) has signed seven-year framework agreements with the Department of Defense and Raytheon, an RTX Corp (NYSE:RTX) business.

The agreements will increase production of critical hardware for SM-3 Block IB and Block IIA interceptors. Financial terms were not disclosed.

Scaling SM-3 Component Output

Under the agreements, Boeing will expand production of avionics and ejector assemblies used in SM-3 interceptors. The hardware supports precise missile intercepts outside Earth’s atmosphere.

The SM-3 program serves as the backbone of U.S. sea-based missile defense operations.

Boeing, the DoD and SM-3 prime contractor Raytheon plan to ramp up component production ahead of contract. The companies are also negotiating a multi-year award under the framework.

The initiative aligns with the Pentagon’s Acquisition Transformation Strategy, designed to streamline administrative overhead and scale the defense industrial base.

The latest framework follows a recent Missile Defense Agency award to Raytheon for SM-3 Block IIA production.

Read Also: Boeing and Airbus Need More Engines. GE and RTX Are Racing to Supply Them

Pentagon Pushes Missile Manufacturing

The SM-3 framework follows Boeing’s earlier agreement with the DoD and Lockheed Martin to expand production of PAC-3 Missile Segment Enhancement (MSE) seekers.

"This gives us a clear demand signal to build and deliver SM-3 interceptors at the levels needed to counter threats," said Bob Ciesla, Vice President of Boeing Precision Engagement Systems.

"The SM-3 is an essential part of the layered air and missile defense architecture that protects the U.S. and its allies worldwide."

Michael P. Duffey, Under Secretary of Defense for Acquisition and Sustainment, added: "These agreements ensure our Warfighters get the munitions they need to win. We are stabilizing our supply chains, expanding munitions production, and putting our entire defense industrial base on a wartime footing."

Technical Analysis: Key Levels & Momentum

BA continues to trade above all major moving averages. It sits 3.7% above its 20-day SMA ($223.11) and 5.5% above its 200-day SMA ($219.23).

The active Golden Cross, with the 50-day SMA above the 200-day SMA, reinforces an upward intermediate trend.

MACD Indicator: Momentum remains constructive, with the MACD line above its signal line and positive histogram bars, signaling expanding buyer momentum. Key Levels:

  • Resistance ($237.50): Overhead stall zone for short-term rallies.
  • Support ($214.00): Prior demand zone where buyers previously defended the broader uptrend.

Stock Price Activity: BA shares were up 0.27% at $230.96 and RTX was up 0.95% at $221.84 at the time of publication on Friday, according to Benzinga Pro data.

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