RRTX’s Raytheon secured a five-year SM-6 interceptor contract valued at up to $24.4 billion, with two additional option years. The award creates a large, multiyear defense-production program for RTX to execute.
Raytheon, an RTX business, secured a five-year contract for Standard Missile-6 interceptors valued at up to $24.4 billion, according to the company’s Oct. 1 announcement from Arlington, Virginia. The agreement includes two additional option years and is intended to boost production of the SM-6 missile-defense system.
The contract adds a multiyear award to RTX’s defense backlog, but its full value depends on the exercise of the options and the pace of deliveries over the program period. The SM-6 is described as a combat-proven missile-defense capability.
Raytheon is the operating business tied directly to the award, while RTX is the listed parent company. The mechanism for RTX is defense-program revenue recognized as missiles are produced and delivered under the contract.
The timing and size of individual deliveries, as well as the portion of the potential value represented by the base term versus the options, remain open. Contract execution, production capacity and customer orders will determine how quickly the award translates into reported results.
The next markers are RTX’s quarterly results and subsequent contract or delivery updates. Investors will be able to assess progress through defense sales, backlog conversion and any commentary on SM-6 production.
Our take
1 / 6
Our read · Oct 1
RTX’s Raytheon secured up to $24.4 billion for five years of SM-6 interceptor production.
Why
The award adds a potentially material multiyear defense program to RTX’s revenue visibility, although the headline value includes two option years and execution will determine the timing of recognition. RTX generated $88.6B of FY2025 revenue with 9.7% YoY growth, giving the contract a concrete scale relative to the parent’s existing business while leaving delivery cadence and margins as the key read-throughs.
What could change this view
The read fails if the options are not exercised or if production and delivery delays prevent the potential award value from converting into revenue and earnings.
▲ The case it holds
A five-year SM-6 program valued at up to $24.4B could extend RTX’s defense backlog and reinforce growth after FY2025 revenue reached $88.6B, up 9.7% YoY.
▼ The case it breaks
The $24.4B figure is a maximum value that includes two additional option years, so realized revenue and earnings could be substantially less or arrive more slowly than the award headline suggests.
Reported by PR Newswire as RTX's Raytheon awarded $24.4 billion multi-year contract for SM-6 interceptors, . Who answers for this
Prices: 1D EOD · OCT 9 CLOSE, licensed end-of-day data.
Source: PR Newswire · Published here THU, OCT 1 · 5:20 PM ET · 2 reports · 2 publishers in this record · How this is decided →
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