Navy's $24.4 Billion SM-6 Award Is Raytheon's Third $20 Billion Missile Deal Since August
The five-year order backs a production target above 500 SM-6s a year, but the Pentagon has not said how many missiles it buys and Congress has not yet funded it.
The five-year order backs a production target above 500 SM-6s a year, but the Pentagon has not said how many missiles it buys and Congress has not yet funded it.
The Navy awarded Raytheon, an RTX business, a contract worth up to $24.4 billion on Oct. 1 to accelerate Standard Missile-6 production, Acting Navy Secretary Hung Cao announced. The deal runs five years, with two additional option years.
The Department of War's release lists three goals: faster production, higher manufacturing throughput and cost savings across the industrial base. Paired with the recent Tomahawk award, it said, the agreement gives industry the long-term predictability to expand its workforce and secure supply chains. The award "locks in the magazine depth" U.S. forces need, said Michael Duffey, the under secretary of war for acquisition and sustainment.
Frequently Asked Questions
What did the Navy award Raytheon on Oct. 1, 2026?
A five-year contract with two additional option years, valued at up to $24.4 billion, to accelerate Standard Missile-6 production, according to the Navy's announcement.
How many SM-6 missiles does the contract buy?
Neither the Pentagon nor RTX disclosed a quantity. The $24.4 billion figure is a ceiling. The February framework agreements between Raytheon and the department carried a target of more than 500 SM-6s a year, The Defense Post reported.
Is the money appropriated?
Not yet. Industry executives have warned that Congress has not appropriated funding for this year's multiyear munitions deals, Reuters reported, which may limit how much contractors can invest in components and facilities until lawmakers act.
What does the SM-6 do?
RTX describes it as a single missile for anti-air warfare, anti-surface warfare and ballistic missile defense, fired from Navy ships and from land-based launchers.
How does this fit with Raytheon's other 2026 awards?
It is the company's third munitions award above $20 billion since mid-August, after a $22.9 billion Tomahawk contract and an AMRAAM deal worth up to $20.7 billion in late September.
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Marcus Schuler
Marcus Schuler edits BattlePolicy, a daily defense-technology brief connecting the companies and capabilities behind modern war to the contest among Europe, the US, Russia, and China.