The U.S. Navy has awarded RTX’s Raytheon unit a multiyear contract valued at up to $24.4 billion for SM-6 missiles, the service announced Thursday, as the Pentagon works to rebuild munitions stockpiles strained by ongoing conflicts in the Middle East.
The five-year production agreement, which includes two optional years, is intended to ensure a consistent supply of the Standard Missile-6, a system capable of both offensive strikes and missile defense, according to the Navy.
Officials said the SM-6 award is the latest in a series of large munitions contracts aimed at spurring industry to increase output. It follows a provisional $20.7 billion multiyear arrangement for Raytheon’s AMRAAM air-to-air missiles announced in late September and a $58.6 billion Patriot interceptor agreement awarded to Lockheed Martin in July.
These multiyear deals are structured to encourage contractors to accelerate schedules and surge production. They align with a broader push by the Trump administration to prioritize weapons manufacturing over shareholder returns.
Industry leaders have cautioned that Congress has not yet appropriated funding for these agreements, which could limit companies’ ability to make major investments in components and facilities until lawmakers act.
RTX has said it is investing heavily to meet rising demand. The company has expanded its skilled workforce, deepened partnerships across the defense industrial base and increased automation on production lines to support significant near- and long-term output growth.
Raytheon says the SM-6 is the only combat-proven weapon capable of anti-air warfare, anti-surface warfare and ballistic missile defense. The missile has been launched from multiple classes of Navy ships as well as from land-based systems, including during a recent US, UK test SM-6 missile in Atlantic sinking drill.
SM-6 missiles central to Pentagon stockpile strategy
The Pentagon views the SM-6 as a core element of its plan to rebuild and modernize munitions inventories. The contract’s structure is intended to provide predictability for suppliers throughout the missile’s production chain while positioning the Navy to ramp deliveries as funding becomes available.
The U.S. Navy is expected to coordinate closely with industry partners to align production timelines with future appropriations. Defense officials say the multiyear approach could become a model for other high-demand munitions programs if Congress follows through with sustained funding.