RTX's Raytheon awarded $515 million contract for SPY-6 family of radars

Rhea-AI Summary

RTX (NYSE: RTX) reported that its Raytheon business received a $515 million follow-on contract from the U.S. Navy for the SPY-6 family of radars. The award supports integration, testing and upgrades of Flight IIA destroyers with the SPY-6(V)4 variant.

The sole-source contract includes support for Germany and potential additional countries via Foreign Military Sales. Raytheon has invested $800 million in radar manufacturing and expects to double SPY-6 output by 2028, with deployments projected on more than 50 U.S. Navy ships over the next decade.

Positive

• $515 million follow-on SPY-6 radar contract from U.S. Navy
• Upgrades Flight IIA destroyers with SPY-6(V)4 variant
• Support includes Germany with potential Foreign Military Sales expansion
• $800 million investment in radar manufacturing modernization
• Expected doubling of SPY-6 production output by 2028
• SPY-6 deployment planned on more than 50 U.S. Navy ships

Negative

• None.

News Market Reaction – RTX

-0.98%

-0.98% Session close to close

In the Jun 3 session, RTX declined 0.98%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement highlights a substantial U.S. Navy follow-on contract worth $515 million for the S...

Analysis

This announcement highlights a substantial U.S. Navy follow-on contract worth $515 million for the SPY-6 radar family, supported by an $800 million investment in advanced manufacturing. Recent news flow shows multiple government program wins and technology milestones. Investors may track execution on doubling SPY-6 output by 2028, progress toward deployments on over 50 ships, and any future use of the effective shelf registration for capital-raising activities.

Key Figures

SPY-6 contract value: $515 million Manufacturing investment: $800 million Commissioned ships: 2 ships +4 more

7 metrics

SPY-6 contract value $515 million Follow-on U.S. Navy contract for SPY-6 family of radars

Manufacturing investment $800 million Investment to modernize radar manufacturing facilities

Commissioned ships 2 ships SPY-6 already aboard two commissioned U.S. Navy ships

Ships in testing 11 ships SPY-6 installed on 11 additional U.S. Navy ships in testing

Future deployments More than 50 ships SPY-6 expected to be deployed over next decade

Radar facility size 30,000 square feet Raytheon Radar Development Facility in Andover, Massachusetts

Output target year 2028 Company expects to double SPY-6 output by 2028

Historical Context

5 past events · Latest: May 26 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 26	Javelin LWCLU deliveries	Positive	+1.1%	First LWCLU deliveries and factory modernization for higher Javelin production.
May 26	DARPA rocket motor award	Positive	+1.1%	Phase two DARPA Burn n' Go contract for composable solid rocket motors.
May 20	PACE4ACE system demo	Positive	+0.2%	Demonstration of auto-switching communications system for contested environments.
May 19	Rare earth supply risk	Negative	-0.1%	Commentary on dependence on Chinese rare earth magnets in U.S. weapons.
May 18	Landsat Next design review	Positive	+2.8%	Completion of preliminary design review for NASA Landsat Next instruments.

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

Pattern Detected

Recent defense and technology contract news has generally seen modestly positive price reactions, with only the supply-chain risk commentary showing a small negative move.

Recent Company History

Over the past few weeks, RTX has issued several defense and space program updates. Javelin LWCLU deliveries and a DARPA solid rocket motor award on May 26 each coincided with a +1.11% move. A NASA Landsat Next instrument design milestone on May 18 saw a +2.79% reaction. In contrast, a commentary on dependence on Chinese rare earth magnets on May 19 coincided with a slight -0.15% move. Today’s SPY-6 radar contract adds another sizable U.S. government award to this sequence of defense-related developments.

Key Terms

gallium nitride (gan)

1 terms

gallium nitride (gan) technical

"complete with a gallium nitride (GaN) foundry to produce the semiconductors"

Gallium nitride (GaN) is a durable semiconductor material used to build electronic components that switch power and radio signals faster and with less energy loss than older silicon parts. Think of it as a more efficient, high-performance engine that lets devices be smaller, run cooler, and handle higher voltages; investors watch GaN adoption because it can lower manufacturing and operating costs, enable new products, and shift competitive advantage and profit margins across chipmakers and equipment makers.

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

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Contract accelerates integration and test support for the U.S. Navy's most advanced maritime radar

ANDOVER, Mass., June 3, 2026 /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, has been awarded a $515 million contract from the U.S. Navy for the SPY-6 family of radars. The contract is a follow-on to the Integration and Production Support contract, which was awarded in June 2025, and includes upgrading Flight IIA destroyers with the SPY-6(V)4 variant.

Under the sole source award, Raytheon will provide continued support for the SPY-6 family of radars to the U.S. Navy, including the government of Germany with the potential for other countries to be added under the Foreign Military Sales program.

"With over a decade of demonstrated success at sea, SPY-6 remains the U.S. Navy's most advanced maritime radar, providing the fleet with unmatched sensing power and multi-mission readiness to counter evolving threats," said Barbara Borgonovi, president of Naval Power at Raytheon. "Backed by an $800 million investment to modernize our radar manufacturing facilities, we're accelerating production and are expecting to double SPY‑6 output by 2028."

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, enhancing defense against air, surface, ballistic and electronic warfare threats.

SPY-6 is one of several radar programs designed and manufactured at Raytheon's Radar Development Facility in Andover, Massachusetts, a 30,000-square foot site supporting the production of diverse types of radars for U.S. and allied forces. This vertically integrated and highly automated site is one of the most advanced in the world, complete with a gallium nitride (GaN) foundry to produce the semiconductors essential for SPY-6 and other Raytheon radars.

Raytheon is actively hiring engineers across multiple disciplines to support this critical program. Interested candidates can learn more by visiting our website.

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.

View original content:https://www.prnewswire.com/news-releases/rtxs-raytheon-awarded-515-million-contract-for-spy-6-family-of-radars-302789701.html

SOURCE RTX

FAQ

What is the value of RTX (NYSE: RTX) new SPY-6 contract with the U.S. Navy?

RTX’s Raytheon business received a U.S. Navy SPY-6 radar contract worth $515 million. According to Raytheon, this follow-on award funds integration, production support and upgrades for the SPY-6 family of radars, including Flight IIA destroyers equipped with the SPY-6(V)4 variant.

How will the new SPY-6 contract impact RTX radar production capacity?

The contract supports accelerated SPY-6 radar production growth at RTX. According to Raytheon, an $800 million investment in modernizing radar manufacturing facilities is expected to double SPY-6 output by 2028, enhancing delivery capacity for U.S. Navy and allied customers.

Which ships will receive SPY-6 radars under the latest RTX Navy contract?

The award covers upgrades of U.S. Navy Flight IIA destroyers with the SPY-6(V)4 variant. According to Raytheon, SPY-6 is already on two commissioned ships, installed on 11 more, and is expected to deploy on over 50 Navy ships over the next decade.

Does the new SPY-6 contract for RTX include international customers?

Yes, the contract includes SPY-6 support for the government of Germany and potential additional nations. According to Raytheon, other countries may be added through the Foreign Military Sales program, expanding the radar’s use among U.S. allies.

What is the strategic importance of the SPY-6 radar for RTX and the U.S. Navy?

SPY-6 provides advanced maritime sensing for multi-mission readiness across several threat domains. According to Raytheon, it enhances defense against air, surface, ballistic missile and electronic warfare threats and is planned for more than 50 U.S. Navy ships.

Where does RTX manufacture SPY-6 radars mentioned in the June 3, 2026 contract?

SPY-6 radars are designed and built at Raytheon’s Radar Development Facility in Andover, Massachusetts. According to Raytheon, this 30,000-square-foot, vertically integrated site includes a gallium nitride foundry that produces key semiconductors for SPY-6 and other radars.

Is RTX hiring for roles related to the SPY-6 radar program?

RTX is actively recruiting engineers to support the SPY-6 radar program. According to Raytheon, it is seeking talent across multiple engineering disciplines, and interested candidates can find more information and opportunities by visiting the company’s careers website.