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Navy, Raytheon Ink $24.4B Deal for SM-6 Production

October 2, 2026

2 min read

Key Takeaways

The US Navy and Raytheon signed a $24.4 billion deal for SM-6 production.
The five-year agreement aims to accelerate production and reduce costs.
The deal includes two additional option years.
The agreement follows recent contracts for Tomahawk and AMRAAM missiles.

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Strategic Implications

This deal may indicate the Pentagon's efforts to address munition shortages and bolster critical production lines. The agreement could provide long-term predictability for the defense industry, enabling expansion of workforce capacity and securing supply chains, which suggests a shift in the department's procurement strategy.

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What Happened

Pentagon Accelerates Standard Missile Production Amid Munition Shortages

The US Navy and Raytheon have signed a $24.4 billion deal to accelerate production of the Standard Missile-6 (SM-6), a critical munition used to strike various targets. The five-year agreement, with two additional option years, aims to drive faster production, increase manufacturing throughput, and deliver significant cost savings. The deal comes as the Pentagon seeks to bolster critical munition production lines and refill its stockpiles, following recent contracts for Tomahawk and AMRAAM missiles. The agreement was announced by the Pentagon and reported by Breaking Defense.

Source | Originally Published: October 2, 2026

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