RTX's Raytheon wins $24.4 billion SM-6 contract

RTX's Raytheon was awarded a $24.4 billion multiyear contract for SM-6 missiles, Pentagon said; it will accelerate production as officials seek steadier supplies.

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Pentagon cites production predictability

The Pentagon described the five-year agreement, with two option years, as designed to drive faster production and give the defense industry longer-term predictability to expand workforce capacity and secure supply chains, officials said. The Navy said the multiyear award aims to provide a steady, reliable supply of Standard Missile-6 interceptors capable of anti-air and anti-surface missions.

A mid-July Pentagon inspector general report had flagged strains in munitions availability, and President Trump this week acknowledged constraints. "Some forms of ammunition are a little bit lower than other forms," President Trump said in an interview published Thursday, adding, "We're stocking up at levels we've never done before."

The contract is likely to support demand for major defense suppliers and to underpin production activity over the contract term, officials said. Investors will watch RTX's production and contract execution through Oct. 31, 2026, for signals on revenue and cash flow as the program ramps.