Raytheon has received a potential $24.4 billion U.S. contract to manufacture Standard Missile-6 (SM-6) interceptors over the next five years.
The agreement also includes two option years, providing the U.S. Navy with an extended pathway to further expand its SM-6 inventory and sustain long-term production capacity.
The SM-6 award is the latest in a series of major munitions contracts pursued by the Pentagon this year as it seeks to encourage defense contractors to accelerate production and expand manufacturing capacity. The agreement follows a provisional $20.7 billion multiyear contract for Raytheon's AIM-120 AMRAAM air-to-air missiles announced in late September, as well as a $58.6 billion Patriot interceptor contract awarded to Lockheed Martin in July.
The scale of the agreement becomes clearer when compared with national defense budgets. At $24.4 billion, Raytheon's five-year SM-6 contract is equivalent to roughly 65 percent of Australia's entire 2025 defense expenditure, 74 percent of Poland's, 56 percent of South Korea's and 41 percent of Japan's. Even in the case of India, whose 2025 defense spending was estimated at $78.3 billion, the SM-6 agreement represents almost one-third of an entire year's military expenditure.
Spread evenly across its five-year base period, the contract would average approximately $4.9 billion annually—more than the annual defense budgets of some smaller military powers.
Source: Defense Updates
