By Kimberly Chin

Raytheon Missiles and Defense, a unit of Raytheon Technologies Corp., has received a $2.3 billion production contract from the U.S. Missile Defense Agency for seven missile defense radars.

The gallium nitride (GaN)-based AN/TPY-2 radars are part of the Terminal High Altitude Area Defense (THAAD) system, which is meant to protect against incoming ballistic missile threats.

The X-band radar systems can operate in forward-based mode, which detects ballistic missiles and lethal objects as they arise after launch, and terminal mode, part of the THAAD system, that guides interceptors toward a descending missile's warhead.

Raytheon said the contract is part of a foreign military sale to Saudi Arabia.

Write to Kimberly Chin at kimberly.chin@wsj.com