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RTX's Raytheon awarded $1.8 billion hardware production and sustainment contract for SPY-6 family of radars

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RTX (NYSE: RTX) announced that its Raytheon business received a $1.8 billion contract extension from the U.S. Navy for SPY-6 hardware production and sustainment, adding to the initial contract awarded in March 2022. Contract options could bring the total value to $3.3 billion.

SPY-6 is currently aboard two commissioned Navy ships and installed on 11 more under testing, and is expected to be deployed on 50+ ships over the next decade. Raytheon has invested over $800 million to modernize radar manufacturing and aims to double SPY-6 output by 2028, while expanding its engineering workforce in Andover to support the program.

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Positive

  • $1.8 billion SPY-6 contract extension from U.S. Navy
  • Total SPY-6 contract value could reach $3.3 billion with options
  • SPY-6 expected on 50+ U.S. Navy ships over next decade
  • Over $800 million invested to modernize radar manufacturing facilities
  • Plan to double SPY-6 radar output by 2028
  • RTX reported more than $88 billion in 2025 sales

Negative

  • More than $800 million committed to SPY-6 manufacturing upgrades

News Market Reaction – RTX

-0.40%
-0.40% Session close to close

In the Jul 21 session, RTX declined 0.40%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The supplied history showed positive 24-hour reactions for all five recent RTX news events, includin...
Analysis

The supplied history showed positive 24-hour reactions for all five recent RTX news events, including 1.29% after the NGSRI milestone. That record frames this contract as another execution datapoint; the effective S-3ASR shelf remains a financing consideration.

Key Figures

Contract extension: $1.8 billion Cumulative contract value: $3.3 billion Commissioned ships: 2 ships +5 more
8 metrics
Contract extension $1.8 billion SPY-6 hardware production and sustainment
Cumulative contract value $3.3 billion if contract options are exercised
Commissioned ships 2 ships SPY-6 currently aboard U.S. Navy ships
Ships undergoing testing 11 ships SPY-6 installed on U.S. Navy ships
Planned deployment More than 50 ships expected U.S. Navy deployment over the next decade
Facility investment More than $800 million radar manufacturing modernization and capacity expansion
Output target Double output SPY-6 production target by 2028
2025 sales More than $88 billion RTX company description

Historical Context

5 past events · Latest: Jul 20 (Positive)
Pattern 5 events
Date Event Sentiment 24h Move Catalyst
Jul 20 engine demonstration Positive +0.5% Demonstration test validated additively manufactured engine performance at Farnborough International Airshow.
Jul 20 engine selection Positive +0.5% Customer selected GTF engines for an undisclosed number of Airbus A320neo aircraft.
Jul 20 sustainment contract Positive +0.5% Nine-year contract covers overhaul of more than 750 PT6A-68 engines.
Jul 15 engine selection Positive +0.5% British Airways selected engines for 33 firm and 30 option aircraft.
Jul 15 interceptor milestone Positive +1.3% Technology demonstration achieved direct hits against Army-simulated aerial threats.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent RTX news events in the supplied history all had positive 24-hour reactions, aligning with favorable company announcements.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Production continues to ramp for U.S. Navy's most advanced maritime radar

ANDOVER, Mass., July 21, 2026 /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, was awarded a $1.8 billion contract extension for SPY-6 radars for the U.S. Navy, building on the initial hardware production and sustainment contract awarded in March 2022. The contract includes options which, if exercised, would bring the cumulative value to $3.3 billion.

"This contract extension reflects the Navy's confidence in our ability to deliver advanced, reliable and scalable radar solutions," said Barbara Borgonovi, president of Naval Power at Raytheon. "Our continued investment and commitment to ramping production will ensure the fleet has the sensing advantage to stay ahead of evolving threats for decades to come."

SPY-6 is now aboard two commissioned U.S. Navy ships and is installed on 11 others, all of which are undergoing various stages of testing. Over the next decade, SPY-6 is expected to be deployed on more than 50 U.S. Navy ships, giving the fleet unmatched sensing capability and multi-mission readiness to stay ahead of evolving threats.

Raytheon's SPY-6 family of radars are built on more than a decade of design, testing and manufacturing experience and have been validated by successful performance at sea. The company has invested more than $800 million to modernize its radar manufacturing facilities and expand production capacity. With these upgrades, Raytheon is positioned to double SPY-6 output by 2028, helping ensure long-term availability and lowering cost for the Navy.

Raytheon is significantly expanding its engineering workforce in Andover to support this critical program. Opportunities are available for emerging talent, experienced professionals, and veterans. Discover open roles on our website and apply today.

About Raytheon
Raytheon, an RTX business, is a leading provider of defense solutions to help the U.S. government, our allies and partners defend their national sovereignty and ensure their security. For more than 100 years, Raytheon has developed new technologies and enhanced existing capabilities in integrated air and missile defense, smart weapons, missiles, advanced sensors and radars, interceptors, space-based systems, hypersonics and missile defense across land, air, sea and space.

About RTX
With more than 180,000 global employees, we push the limits of technology and science to redefine how we connect and protect our world. With industry-leading capabilities, we advance aviation, engineer integrated defense systems for operational success, and develop next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2025 sales of more than $88 billion, is headquartered in Arlington, Virginia.

For questions or to schedule an interview, please contact corporatepr@rtx.com

 

Cision View original content:https://www.prnewswire.com/news-releases/rtxs-raytheon-awarded-1-8-billion-hardware-production-and-sustainment-contract-for-spy-6-family-of-radars-302830375.html

SOURCE RTX

FAQ

What is the value of RTX (NYSE: RTX) Raytheon SPY-6 contract extension announced in July 2026?

The SPY-6 contract extension is valued at $1.8 billion. According to RTX, the hardware production and sustainment agreement for the U.S. Navy includes options which, if exercised, could raise the cumulative contract value for SPY-6 radars to $3.3 billion.

How many U.S. Navy ships will use RTX Raytheon SPY-6 radars under the latest contract?

RTX expects SPY-6 radars to be deployed on more than 50 U.S. Navy ships over the next decade. According to RTX, SPY-6 is already aboard two commissioned ships and installed on 11 others that are currently in various stages of testing.

How is RTX investing in SPY-6 radar manufacturing capacity for the U.S. Navy?

RTX has invested over $800 million in modernizing radar manufacturing facilities for SPY-6. According to RTX, these upgrades expand production capacity so the company is positioned to double SPY-6 radar output by 2028, supporting long-term availability and lower costs for the Navy.

What does the SPY-6 contract mean for RTX (NYSE: RTX) employment in Andover, Massachusetts?

The SPY-6 program is driving a significant expansion of RTX’s engineering workforce in Andover. According to RTX, the company is adding roles for emerging talent, experienced professionals, and veterans to support this critical radar program and is inviting candidates to apply through its website.

How does the SPY-6 contract compare to RTX’s overall 2025 sales?

RTX reported more than $88 billion in 2025 sales. According to RTX, the SPY-6 contract extension adds up to $1.8 billion, with options that could bring the cumulative value to $3.3 billion, contributing to its broader defense portfolio revenues.

What is the SPY-6 radar and why is it important to the U.S. Navy and RTX?

SPY-6 is described as the U.S. Navy’s most advanced maritime radar. According to RTX, the SPY-6 family offers scalable, multi-mission sensing validated by performance at sea and is expected to equip over 50 Navy ships, enhancing long-term fleet readiness and threat detection.