The U.S. Navy has awarded RTX’s Raytheon a multi-year contract worth up to $24.4 billion for Standard Missile-6 interceptors, one of the largest single munitions awards of the year. The company announced the deal on October 1.

The agreement runs for five years, with two additional option years. The “up to” figure is a ceiling rather than a firm order, so the final number of missiles will depend on how the Navy exercises the contract. Neither the company announcement nor early coverage gave production quantities or a breakdown by missile variant.

The SM-6 is a ship-launched interceptor that can be used against aircraft, surface ships and ballistic missiles, and it can also be fired from land-based launchers. That range of roles makes it one of the Navy’s most heavily used weapons for air and missile defense, and one that fleet planners worry about running short of. Defense News framed the award as a response to stockpile concerns.

Raytheon says it has expanded its skilled workforce, built up supplier partnerships and automated parts of production to support what it describes as significantly higher output. Company president Phil Jasper said the missile’s multi-mission capability is vital to the Navy customer, and that Raytheon is focused on meeting demand.

The award follows a string of large 2026 munitions deals aimed at replacing interceptors and missiles expended in recent conflicts, including a potential $20.7 billion contract for AMRAAM air-to-air missiles reported by Breaking Defense in September. Taken together, the contracts signal a shift from small, stop-and-start buys toward long-term production agreements meant to give manufacturers and their suppliers a steady order book.

Sources: RTX; Defense News; Breaking Defense.