US Navy awards RTX's Raytheon $24.4 billion contract for Standard Missile-6
RTX•RTX's Raytheon won a five-year US Navy contract worth up to $24.4 billion to produce Standard Missile-6 interceptors, with two additional option years. The deal is part of a Pentagon push to replenish munitions stockpiles and increase production.
1. Five-year production deal
The contract is intended to provide a steady, reliable supply of SM-6 missiles, which can be used for offensive strikes and missile defense. Raytheon says the weapon can perform anti-air warfare, anti-surface warfare and ballistic missile defense, and has been fired from Navy ships and land-based launchers.
2. Funding and production
The award follows a $20.7 billion provisional multiyear deal for Raytheon's AMRAAM missiles in late September and a $58.6 billion Patriot interceptor contract awarded to Lockheed Martin in July. Industry executives have warned that Congress has not yet appropriated funding for the deals, potentially limiting contractors' ability to invest in components and facilities until lawmakers act.
3. RTX capacity plans
RTX said it has invested to meet rising demand by expanding its skilled workforce, strengthening partnerships across the defense industrial base and automating production, aiming to significantly increase output.
