Key facts
- RTX's Raytheon unit received a multiyear contract from the U.S. Navy valued at up to $24.4 billion for Standard Missile-6 interceptors.
- The contract includes two additional option years and aims to replenish U.S. munitions stockpiles.
- The SM-6 missile can perform both offensive strikes and missile defense missions.
- Raytheon was also awarded a $333 million contract for SM-6 Block IA missile production.
- Raytheon previously secured a $22.9 billion contract for Tomahawk cruise missiles.
The U.S. Navy has awarded RTX's Raytheon unit a multiyear contract valued at up to $24.4 billion to produce Standard Missile-6 (SM-6) interceptors. This significant award, announced on Thursday, October 1, is part of the Pentagon's broader effort to replenish munitions stockpiles that have been depleted due to ongoing conflicts, particularly in the Middle East. The contract is structured to provide a consistent and reliable supply of the SM-6, a versatile missile capable of performing both offensive strike missions and missile defense operations.
This latest contract follows a series of substantial munitions deals pursued by the Pentagon this year to accelerate contractor output. In late September, Raytheon secured a provisional multiyear deal worth $20.7 billion for its AMRAAM missiles, and in July, Lockheed Martin was awarded a $58.6 billion contract for Patriot interceptors.
Separately, Raytheon received a $333 million contract from the U.S. Navy in January 2025 to produce SM-6 Block IA missiles, with production expected to be completed by 2027 across multiple Raytheon facilities. The SM-6 is highlighted as a unique solution supporting anti-air, anti-surface warfare, and sea-based terminal ballistic missile defense. Raytheon's defense business has seen significant growth, with sales increasing 18% year-over-year to $8.27 billion in the second quarter, driven by demand for missiles like the Patriot, Standard Missile, and AMRAAM. Additionally, Raytheon secured a $22.9 billion contract for Tomahawk cruise missiles to bolster long-term orders and expand production capacity.