US announces $24.4 billion contract to accelerate SM-6 missile production

The Pentagon and the US Navy announced Thursday a multiyear contract valued at up to $24.4 billion awarded to Raytheon, an RTX business, to accelerate production of the Standard Missile-6 (SM-6).

The five-year agreement, which includes two additional option years, targets faster output, higher manufacturing throughput, and cost savings for the critical anti-air and anti-surface warfare munition.

Officials framed the deal as essential for rebuilding stockpiles depleted by Iran and ensuring US forces maintain superiority.

“Our mission is to ensure our warfighters never enter a fair fight,” said Michael P. Duffey, Under Secretary of War for Acquisition and Sustainment.

“This multi-year award locks in the magazine depth and lethal dominance our forces need to prevail, while demanding our industrial base produce at war-speed.”

Acting Secretary of the Navy Hung Cao emphasized the operational urgency.

“Maritime strength demands weapons at speed and scale,” Cao said.

“This investment expands production and delivers the firepower our warfighters need to fight, win, and come home safe.” Chief of Naval Operations Adm. Daryl Caudle added that combat credibility depends on sufficient weapons produced at the required scale, noting the award provides industry the demand signal to expand production and build fleet magazine depth.

The SM-6 is described by Raytheon as the only combat-proven weapon capable of anti-air warfare, anti-surface warfare, and ballistic missile defense.

It has been successfully fired from US Navy ships and land-based launchers, offering versatile defense against a range of kinetic threats.

Raytheon President Phil Jasper stated: “SM-6’s multi-mission capability is vital to our customer, and Raytheon is intensely focused on meeting the demand. By continuously investing in our operations and facilities, we are removing constraints and boosting capacity to ensure we deliver this critical capability our sailors depend on.”

The contract builds on earlier framework agreements between Raytheon and the Department of War aimed at expanding production capacity.

Company officials noted investments in workforce growth, facility upgrades, automation, and industrial partnerships to support significantly higher output for both near- and long-term needs.

The multiyear structure is intended to give industry the predictability required to expand capacity and secure supply chains.

This award follows other large munitions contracts this year, including a $20.7 billion provisional multiyear deal for Raytheon’s AMRAAM missiles and a $58.6 billion Patriot interceptor agreement with Lockheed Martin.

Officials said such long-term commitments, alongside a recent Tomahawk award, form part of a broader push under the Portfolio Acquisition Executive for Munitions to accelerate delivery of critical weapons and strengthen the defense industrial base.