Interceptor · Sea
Standard Missile 2 (SM-2)
Ship-launched surface-to-air missile family for fleet air defense.
by RTX · First fielded 1981
- Milestones1
- Operators—
- Components—
- Programs—
- Capabilities—
- Inputs—
Timeline1
- FieldedConfirmed
SM-2 medium-range variant deployed
The latest 10 milestones. Solid entries are confirmed, outlined reported, dashed estimated or still to come; dotted italic entries are speculative. Dates show only the precision the sources give.
In Service
- First fielded
- 1981
Cost to the Government
Missiles · RTX / Raytheon
Standard Missile 2 (SM-2)
Block IIIC recurring hardware estimates are separated from canisters, support and the later Block IIICU development award.
Block IIIC recurring hardware / missile
$2.526M
FY2025 · PB2025 request · Nominal USD; source budget basis
P-5 FK007 hardware in the SM modification program. Excludes separate canisters and support; not a new-build price for every SM-2 variant or Block IIICU.
U.S. Navy · government budget document mirror ↗U.S. inventory
Not verified
A current U.S. inventory was not established. Annual procurement, cumulative deliveries and production capacity are not a stockpile count.
U.S. procurement quantity
Not verified
No comparable U.S. procurement quantity was established in this review.
R&D program total
Not verified
A lifetime program R&D total was not established. Development contracts and shared program budgets are not substituted for that total.
Cost & funding breakdown
Block IIIC canister / unit
$267,900
FY2025 request · Nominal USD; source budget basis
Separate canister line, excluded from the recurring missile hardware figure.
U.S. Navy · government budget document mirror ↗Development funding is not a round price
The release reports more than 12,000 historical deliveries to U.S. and allied customers combined. That figure is neither current U.S. inventory nor this contract’s quantity.
Separate the modification variant from later development
The budget isolates Block IIIC recurring hardware and canisters. The later $258M Block IIICU award covers development; it is not added to these unit estimates.
Operations & sustainment
Annual operations & support
Not verified
A complete, system-specific annual operating and support cost was not established. Procurement, replacement rounds and contract support are different measures.
Cost over time · 4 observations
Each row retains its original scope and dollar basis. Changing quantities, service life and inflation can change the estimate without changing the price of building one unit.
| Observation | Measure | Amount | Dollar basis | Evidence |
|---|---|---|---|---|
| Announced 2025-08-13 | Block IIICU development contract One development phase, not lifetime SM-2 R&D or an annual expenditure. | $258M | Nominal USD; source budget basis | RTX release · Seapower republication ↗ |
| FY2023 · PB2025 | Block IIIC recurring hardware / missile P-5 FK007 hardware in the SM modification program. Excludes separate canisters and support; not a new-build price for every SM-2 variant or Block IIICU. | $2.146M | Nominal USD; source budget basis | U.S. Navy · government budget document mirror ↗ |
| FY2024 · PB2025 | Block IIIC recurring hardware / missile P-5 FK007 hardware in the SM modification program. Excludes separate canisters and support; not a new-build price for every SM-2 variant or Block IIICU. | $2.556M | Nominal USD; source budget basis | U.S. Navy · government budget document mirror ↗ |
| FY2025 · PB2025 request | Block IIIC recurring hardware / missile P-5 FK007 hardware in the SM modification program. Excludes separate canisters and support; not a new-build price for every SM-2 variant or Block IIICU. | $2.526M | Nominal USD; source budget basis | U.S. Navy · government budget document mirror ↗ |
Contracts & purchasing · 1 records
Award values, ceilings and purchase agreements have different meanings. These records are not added together as total spending.
2025-08-13 · Development award announced
U.S. Navy → RTX / Raytheon
$258M · quantity not established
Follow-on engineering, manufacturing, integration and test for Block IIICU all-up rounds, expected through September 2031. Not a production unit cost.
RTX release · Seapower republication ↗
Connected missiles & systems
Naval launcher and missile
Mk 41 Vertical Launching System →Listed Mk 41 missile family; support depends on launcher configuration and ship combat-system integration.
Lockheed Martin ↗
International buyers
Australia · Quantity not verified · Customer named by manufacturer · 2025-08-13
SM-2 family customer; not evidence of a Block IIICU order or current inventory.
RTX release · Seapower republication ↗Canada · Quantity not verified · Customer named by manufacturer · 2025-08-13
SM-2 family customer; not evidence of a Block IIICU order or current inventory.
RTX release · Seapower republication ↗Germany · Quantity not verified · Customer named by manufacturer · 2025-08-13
SM-2 family customer; not evidence of a Block IIICU order or current inventory.
RTX release · Seapower republication ↗Japan · Quantity not verified · Customer named by manufacturer · 2025-08-13
SM-2 family customer; not evidence of a Block IIICU order or current inventory.
RTX release · Seapower republication ↗South Korea · Quantity not verified · Customer named by manufacturer · 2025-08-13
SM-2 family customer; not evidence of a Block IIICU order or current inventory.
RTX release · Seapower republication ↗Netherlands · Quantity not verified · Customer named by manufacturer · 2025-08-13
SM-2 family customer; not evidence of a Block IIICU order or current inventory.
RTX release · Seapower republication ↗Spain · Quantity not verified · Customer named by manufacturer · 2025-08-13
SM-2 family customer; not evidence of a Block IIICU order or current inventory.
RTX release · Seapower republication ↗
Coverage & open research
- Current U.S. inventory and complete annual operating-and-support costs require additional public evidence.
- Buyer records are selected examples, not a complete global order book.
- Unit cost (per round)Reported$2.1MEstimate / observation: 2026-03-05
Business Insider (March 2026, Iran war interceptor costs): 'SM-2s run about $2.1 million each.' Variant and basis not specified; approximate press figure.
Source
Earlier cost observations (2)
- Standard Missile 2 (SM-2) · Unit cost (per round) · $2.5MEstimate / observation: 2024-05-21 · Then-year $
The War Zone (May 2024), based on Pentagon budget documents of the prior five years, rounded to nearest $10,000: SM-2 Block IIIC conversion kit (Block IIIA/B to IIIC) costs the Navy $2.53M each; Block IIIAZ kit $770,000.
Source - Standard Missile 2 (SM-2) · Unit cost (per round) · $2.3MEstimate / observation: 2020-12-11 · Then-year $ · FY2021
FY2021 Navy budget request unit price for SM-2 Block IIIC as reported by The War Zone from official budget documents. This is the cost of the conversion kit that turns existing SM-2 Block IIIA/IIIB missiles into Block IIIC (active radar homing), not a new-build round. Block IIIAZ (Zumwalt) kit: $1.2M.
Source
Unit costs and contract unit prices for this system, and budget figures for the programs that buy it. Each figure states its dollar basis and links its source; contract values are under Programs & awards.