US announces $24.4 billion contract to accelerate SM-6 missile production

U.S. defense stocks gained attention as Boeing (BA) won fighter-jet contracts, RTX (RTX) and L3Harris (LHX) secured missile deals, and Ondas (ONDS) expanded its counter-drone portfolio. Defense Secretary Pete Hegseth announced an Autonomous Warfare Command to advance AI and drone tech. BA secured a $2.38B F-15EX contract and a $20B F/A-XX development program. RTX won a $20.7B AMRAAM missile contract, while LHX received a $6B THAAD propulsion deal.

Raytheon, an RTX business, secured a $24.4B contract from the U.S. Navy for SM-6 missile production over five years, with two optional years. The deal aims to boost manufacturing and generate cost savings, supporting defense industrial base and supply chains. The Department of War highlighted the contract's role in maintaining maritime superiority and workforce growth.

Raytheon, part of RTX, secured a 5-year, $21.74B contract for SM-6 missiles with the U.S. DoD, with 2 optional extension years. The deal ensures steady supply for the U.S. Navy, supporting both offensive and defensive missions. Raytheon plans to increase production capacity through investments and automation.

The U.S. Department of Defense awarded Raytheon, a subsidiary of RTX, a $24.4 billion contract to accelerate production of the Standard Missile-6 (SM-6) for the U.S. Navy. The five-year agreement, with a two-year extension option, aims to increase manufacturing throughput of the interceptor missiles, which have been depleted during the Middle East war. The SM-6 is a versatile missile used for anti-air, anti-surface, and ballistic missile defense.

The US Defense Department awarded a $24.4bn contract to RTX's Raytheon unit for accelerated production of SM-6 missiles over five years, with two optional years, to replenish stockpiles depleted in the Iran conflict. The Pentagon aims to ensure a steady supply of these interceptors, which serve multiple defense roles. RTX has invested in workforce and production capacity, but funding appropriation by Congress remains uncertain. The deal follows similar large contracts for other munitions.

RTX's Raytheon subsidiary secured a $24.4bn contract for SM-6 interceptors for the US Navy, with options extending to 2029. The deal is expected to boost production capacity and support growth. Jefferies reiterated a Buy rating with a $250 target price, citing increased visibility for Raytheon's missile programs.