Boeing Secures $2.6B in Navy Contracts for Harpoon, SLAM ER Missiles

Boeing (NYSE: BA) has received two contracts worth $2.6B combined from the U.S. Navy to produce and deliver Harpoon and Standoff Land Attack Missile Expanded Response weapon systems to foreign military sales customers.

The company will supply 650 units of SLAM ER missiles and provide nonrecurring engineering support related to the weapon system to the government of Saudi Arabia under a potential $1.97B contract, the Department of Defense said Wednesday.

Work will occur in Missouri, Indiana, Michigan, Florida, Connecticut and North Carolina through December 2028. Naval Air Systems Command will obligate the full contract amount using FMS funds at the time of award.

The potential $657M contract modification covers the production of 467 Block II lot 91 full-rate production Harpoon missiles and delivery of support equipment to Brazil, Thailand, Qatar, Saudi Arabia, Japan, India and South Korea and the Netherlands.

Work under the modification will be performed across several sites within the continental U.S. and the U.K. through December 2026. NAVAIR will use FMS funds to obligate the full contract amount.

“We are pleased to continue our long legacy of partnering with the Navy to build weapons that defend America and its international partners,” Cindy Gruensfelder, vice president of Boeing’s weapons segment, said in a statement published Wednesday. “These awards will not only extend production of the Harpoon program through 2026, they will also restart the production line for SLAM ER and ensure deliveries through 2028.”

The awards bring the total amount of cruise missile contracts received by Boeing to approximately $3.1B. The company started building a manufacturing facility in October to support the production of the weapon systems and expects construction work to conclude in 2021.

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