US Navy awards RTX's Raytheon up to $24.4 billion contract for Standard Missile‑6 interceptors
The U.S. Navy announced a multiyear contract worth up to $24.4 billion for RTX’s Raytheon unit to produce Standard Missile‑6 (SM‑6) interceptors. The agreement covers a five‑year base period with two optional extension years, extending through 2029. The deal follows a recent $20.7 billion award for AMRAAM missiles and is part of a broader Pentagon effort to rebuild depleted stockpiles. RTX said it has expanded its workforce and automation to meet the increased production demand.
Why it matters
Jefferies reiterated a Buy rating on RTX, citing the contract’s visibility for Raytheon’s missile program. RTX’s own filing shows the contract ceiling is roughly equal to one quarter of its recent revenue, indicating a material boost to the order book. However, Congress has not yet appropriated funding for the award, which could delay full investment in production capacity.
Key facts
- 1The contract value is up to $24.4 billion. investing.com
- 2The agreement spans a five‑year base period with two optional years. investing.com
- 3The contract follows a $20.7 billion provisional deal for AMRAAM missiles awarded in late September. defensenews.com
- 4RTX’s quarterly revenue for the three months to 30 June 2026 was $24.708 billion. financial-news.co.uk
- 5Jefferies maintains a Buy rating on RTX with a target price of $250. marketscreener.com
- 6Congress has not yet appropriated funding for the SM‑6 award. defensenews.com
Open questions
- Funding for the contract has not been appropriated by Congress, which could affect execution (material 3).
Summary written by AlphAI from 5 of 5 sources. Not investment advice. Figures are as stated by the linked sources.