Raytheon Awarded $250 Million Contract for ESSM Block 2 Licensed Production

Raytheon, an RTX business, has been awarded a $250 million contract from Japan's Mitsubishi Electric Corporation (MELCO) for ESSM Block 2 licensed production. This contract is the latest milestone in the longstanding partnership between Raytheon and MELCO, which spans over 50 years. The partnership allows Japan to enhance its domestic defense manufacturing and missile defense capabilities while strengthening the broader U.S.-Japan security partnership. ESSM Block 2 is a short to medium-range, ship-launched, dual-mode, guided missile that has increased maneuverability and improved performance over its Block 1 predecessor.

Key Takeaways:

• The contract, worth $250 million, is for licensed production of ESSM Block 2 missile kits, parts, and components.
• Raytheon will provide technical support for missile production at MELCO in Japan.
• This contract represents the culmination of decades of partnership between Raytheon and MELCO on critical defense programs.
• The partnership spans over 50 years, with Japan investing in ESSM Block 2 to strengthen its domestic defense manufacturing and missile defense capabilities.
• ESSM Block 2 is a short to medium-range, ship-launched, dual-mode, guided missile with increased maneuverability and improved performance over its Block 1 predecessor.
• The missile has significant digital processing margin to keep pace with evolving threats through software improvements.

Statistics:

• $250 million: the value of the contract awarded to Raytheon by Mitsubishi Electric Corporation (MELCO).
• 50 years: the length of the partnership between Raytheon and MELCO on critical defense programs.
• 12 nations: the number of nations that are customers of ESSM, which is managed by the NATO SEASPARROW Consortium.
• $80 billion: the 2024 sales of more than 185,000 global employees of RTX.

Sources:

• PRNewswire (June 24, 2025)
• RTX (Arlington, Virginia)