The U.S. Navy has awarded RTX’s Raytheon unit an SM-6 contract worth up to $24.4 billion, the Navy and the company said on Oct. 1, 2026.

The deal has a five-year firm term and two option years. Quantities and delivery schedules were not specified, Baird Maritime reported.

The deal is meant to give Raytheon steadier demand to expand output of the Standard Missile-6, which the Navy uses for air defense, anti-ship strikes and ballistic-missile defense.

What the SM-6 Contract Covers

Acting Navy Secretary Hung Cao announced the award as part of the service’s push to speed up weapons production, Baird Maritime reported. The Navy said the multi-year commitment would give industry stable conditions to expand output and would generate cost savings.

The missile can perform anti-air warfare, anti-surface warfare and ballistic missile defense. Raytheon calls it the only combat-proven weapon able to do all three, a claim made by the company. The company said it has been investing in workforce, supplier partnerships and automation to support higher output, according to its release.

Missile climbing on a bright exhaust plume above the mast of a Navy destroyer flying the American flag
A missile climbs away from USS Thomas Hudner (DDG 116) during Formidable Shield 2025. File photo from 2025. Image: U.S. Navy

Part of a Wider Munitions Push

The award is the latest in a series of large munitions contracts the Pentagon has pursued this year. It follows a $20.7 billion provisional multi-year deal for Raytheon’s AMRAAM air-to-air missiles in late September and a $58.6 billion Patriot interceptor deal awarded to Lockheed Martin in July, Defense News reported.

RTX said the order builds on five framework agreements announced with the Department of War in February 2026. Those frameworks set an annual SM-6 production target of more than 500 missiles, Baird Maritime reported. The Pentagon is also trying to replenish stockpiles depleted by conflicts in the Middle East, according to Defense News.

What Is Still Unknown About the SM-6 Contract

Neither the Navy nor RTX has said how many missiles the SM-6 contract covers or when they will be delivered. The headline value is a ceiling, not a firm order. Industry executives have warned that Congress has not yet appropriated funding for these deals, so contractors may be unable to invest at scale in components and facilities until lawmakers act, Defense News reported.

FAQ: SM-6 Contract

How much is the SM-6 contract worth?

Up to $24.4 billion over a five-year firm term, with two option years.

How many SM-6 missiles does it cover?

Not disclosed. Quantities and delivery schedules were not specified.

What can the SM-6 do?

It is used for anti-air warfare, anti-surface warfare and ballistic-missile defense.

Looking Ahead

Watch for an appropriation from Congress, a disclosure of quantities and delivery dates, and any update from Raytheon on how fast it can raise SM-6 output under the deal. The Navy has not said whether the option years will be exercised.

Sources

Nabeel Khan

Written by

Nabeel Khan

Nabeel Khan is the founder and editor of The Aviation Diary. An aerospace industry professional and lifelong aviation enthusiast, he covers military aviation, commercial aviation, aerospace, defense, and space. He built an aviation following across Instagram, TikTok, YouTube, and Threads before launching The Aviation Diary to bring that same coverage to a dedicated news site. Views expressed are his own.

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