US Navy awards Raytheon a $24.4 billion contract to supply interceptor missiles - Sarmad

The U.S. Navy announced on Thursday that a Raytheon unit of RTX Corporation won a multi-year contract worth up to $24.4 billion to produce interceptors for the Navy, as the Department of Defense (Pentagon) seeks to replenish depleted ammunition stocks amid the ongoing conflict in the Middle East.

The Navy stated that the five-year contract, which includes a two-year option, aims to provide a stable and reliable supply of SM-6 missiles capable of conducting offensive strikes and performing missile defense missions.

The latest missile contract is part of a series of large ammunition supply deals the Pentagon has sought to finalize this year, pressuring contractors to ramp up production at a faster pace under the campaign led by President Donald Trump’s administration to prioritize weapons production over shareholder returns.

Industry executives noted that Congress has not yet appropriated the necessary funding for these deals, meaning contractors may be unable to make large-scale investments in components and facilities until lawmakers take the required action.

RTX announced that it has invested heavily to keep pace with rising demand, having expanded its skilled workforce and strengthened partnerships across the defense industrial base, with the goal of significantly increasing production to meet near- and long-term requirements.

Raytheon says the SM-6 missile is the only weapon proven capable of performing air warfare missions, striking surface targets, and defending against ballistic missiles. It has been launched from Navy ships and ground-based launch platforms.