# Navy Expands Raytheon SM-6 Production

On October 1, 2026, the U.S. Navy awarded Raytheon, an RTX business, a multiyear agreement valued at up to $24.4 billion to accelerate production of Standard Missile-6 (SM-6) interceptors. The agreement has a five-year base period and two option years; reports describe a goal of raising annual production from about 125 missiles to roughly 500. The ceiling is not guaranteed revenue: orders, option exercises, appropriations, and delivery performance will affect realized value. Congress has not yet appropriated funding for these production agreements, and no open solicitation or supplier contact was identified.

- The production ramp signals potential demand for missile components, manufacturing capacity, workforce, and supply-chain throughput. One report cites component lead times of up to 36 months, making early capacity planning relevant for suppliers.
- Companies should distinguish the contract ceiling from funded orders and evaluate potential subcontracting through Raytheon’s sourcing channels; the signals provide no specific solicitation or procurement contact.
- A separate, reported $20.7 billion AMRAAM production agreement is related market context, not part of the SM-6 award. Suppliers should assess any opportunities under it separately.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Grants & Funding
**Published:** October 03, 2026

### Government Entities
- U.S. Navy (Navy)
- Department of the Navy (DoN)
- U.S. Department of Defense (DoD)
- U.S. Congress

### Vendors
- Raytheon (RTX) (awardee)
- Lockheed Martin (awardee on the separately referenced Patriot interceptor contract)

### Key Quotes
> This SM-6 award gives industry the demand signal and stability to expand production, strengthen the munitions industrial base, and build the magazine depth our Fleet needs.
> — Daryl Caudle, Chief of Naval Operations

> This award demonstrates what is possible when the Department leverages innovative acquisition approaches to deliver capability at the speed of relevance.
> — Van Hendrey, Portfolio Acquisition Executive for Munitions

> Maritime strength demands weapons at speed and scale.
> — Hung Cao, Acting Secretary of the Navy

### Sources
- [US Navy awards RTX’s Raytheon $24.4B for SM-6 missiles amid stockpile concerns](https://www.defensenews.com/industry/techwatch/2026/10/01/us-navy-awards-rtxs-raytheon-244b-for-sm-6-missiles-amid-stockpile-concerns) - Defense News
- [US Navy awards RTX’s Raytheon $24.4B for SM-6 missiles amid stockpile concerns](https://www.federaltimes.com/defense/2026/10/01/us-navy-awards-rtxs-raytheon-244b-for-sm-6-missiles-amid-stockpile-concerns) - Federal Times
- [Navy Awards RTX $24.4 Billion Contract To Accelerate SM-6 Production - Defense Daily](https://www.defensedaily.com/navy-awards-rtx-24-4-billion-contract-to-accelerate-sm-6-production/navy-usmc) - Defense Daily