The U.S. Navy awarded RTX subsidiary Raytheon a multiyear contract worth up to $24.4 billion to produce Standard Missile-6 (SM-6) interceptors, the service said on Thursday. The five-year agreement includes two additional option years and is intended to provide a steady supply of the missile, which can perform both offensive strikes and missile defense missions.
The Pentagon said the deal is designed to “accelerate” SM-6 production, increase manufacturing throughput, and deliver cost savings across the defense industrial base. The exact number of missiles covered by the contract was not disclosed by either the Pentagon or Raytheon.
The award is part of a broader push by the Pentagon to replenish munitions stockpiles depleted by conflicts in the Middle East and to pressure contractors into ramping up output. It follows a $20.7 billion provisional multiyear deal for Raytheon’s AMRAAM air-to-air missiles in late September and a $58.6 billion Patriot interceptor deal awarded to Lockheed Martin in July.
In mid-August, the Navy awarded Raytheon a $22.9 billion contract to ramp up production of the Tomahawk cruise missile to 1,000 rounds per year. The Pentagon noted that the SM-6 agreement, coupled with the recent Tomahawk award, provides the defense industry with long-term predictability needed to expand workforce capacity and secure critical supply chains.
Industry executives have warned that Congress has not yet appropriated funding for these deals, meaning contractors may be unable to invest at scale in components and facilities until lawmakers act. RTX has said it has invested heavily to keep up with demand, expanding its skilled workforce, strengthening partnerships, and automating production.
Raytheon says the SM-6 is the only combat-proven weapon that can perform anti-air warfare, anti-surface warfare, and ballistic missile defense. It has been fired from Navy ships and land-based launchers. The deal follows a framework agreement signed in February between the Pentagon and Raytheon to pave the way for a multi-year contract and production increase.
Sources: Naval News · Defense News