Raytheon Wins $1.1B U.S. Navy Missile Production Contract

Raytheon Technologies Corporation (RTX) has secured a $1.1 billion contract from the U.S. Navy to produce AIM-9X Block II missiles, marking the largest contract awarded for this program and increasing production to 2,500 missiles annually. The AIM-9X, an advanced infrared-tracking short-range missile, is combat proven and used by over 30 allied and partner nations, adaptable for various modern aircraft and ground-launched systems. Additionally, Raytheon won a $536 million contract to upgrade U.S. Navy Flight IIA warships with its SPY-6(v)4 radar variant, enhancing detection and defense capabilities against multiple threats. These contracts reflect growing global defense spending amid geopolitical tensions, with President Trump advocating increased NATO contributions and requesting a robust $892.6 billion defense budget for 2026 to rebuild military strength. RTX’s stock has gained significantly this year, buoyed by strong demand for its missile and radar technologies, with analysts rating RTX as a moderate buy. The company’s growing order book and advanced defense products position it well to benefit from expanding military budgets and evolving national security priorities.