Raytheon has received a $29.2 million US Navy contract modification aimed at expanding the industrial capacity needed to produce the SM-6 All Up Round, a key element of the navy’s long-range air and missile defense architecture. Rather than funding missile procurement, the award invests in the manufacturing infrastructure that enables higher production output.
The cost-plus-fixed-fee modification will fund special tooling and test equipment across Raytheon’s supplier network, allowing factories to build SM-6 missiles more efficiently and at greater scale. This approach supports sustained production while ensuring reliability and quality across the missile’s complex subsystems.
Work will be distributed among Raytheon sites in Arizona, Connecticut, and Maryland, with the majority of activity taking place in Tucson. Completion of the effort is planned for late 2028, aligning with long-term US Navy missile modernization objectives.
The SM-6’s growing importance is underscored by recent foreign military sales. In February 2025, the US approved a potential $900 million sale of up to 150 SM-6 Block I missiles to Japan, enhancing the Japan Maritime Self-Defense Force’s Aegis destroyers. Later, in November 2025, Washington cleared a $3.5 billion sale to Germany covering SM-6 Block I and SM-2 Block IIIC missiles for Berlin’s future F127 air and missile defense frigates, reinforcing NATO’s layered maritime defense posture.
