Raytheon awarded $24.4 billion contract for SM-6 missiles

Raytheon has secured a multi-year contract from the Pentagon valued at up to $24.4 billion to produce Standard Missile-6 (SM-6) interceptors. The agreement spans five years, with two additional option years for extension.

The SM-6 is a versatile, multi-mission weapon capable of anti-air warfare, anti-surface warfare, and ballistic missile defense. It can intercept aerodynamic, ballistic, and hypersonic targets at distances exceeding 240km, and can strike land-based targets at ranges up to 460km.

The contract aims to significantly boost production capacity. The U.S. intends to increase annual output from approximately 125 units to 500 units per year within seven years to replenish reserves and meet rising demand. Raytheon has invested in workforce expansion and production automation to support this increased scale.