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US Awards Raytheon $24.4 Billion to Boost Missile Production Amid Iran War
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Moneycontrol•02-10-2026, 08:30
US Awards Raytheon $24.4 Billion to Boost Missile Production Amid Iran War
- •The Pentagon awarded Raytheon a $24.4 billion contract to accelerate SM-6 missile production, addressing munitions expended during the Iran war.
- •The five-year agreement, with two optional years, aims to drive faster production of the "critical anti-air and anti-surface warfare munition."
- •This deal provides the defense industry with long-term predictability to expand workforce capacity and secure critical supply chains.
- •The Defense Department's inspector general reported "strategic inventory shortfalls and revealed industrial base bottlenecks" due to munitions expenditure on Operation Epic Fury.
- •Raytheon confirmed increased efforts to meet demand, with President Phil Jasper stating investments are being made to remove constraints and boost capacity for the "combat-proven weapon."
Key Questions Answered
The Pentagon announced a $24.4 billion five-year agreement with Raytheon, featuring two additional option years, to accelerate production of SM-6 missiles and help replace munitions expended during the conflict with Iran.
The war against Iran, launched on February 28, severely depleted US munition supplies, resulting in strategic inventory shortfalls, industrial base bottlenecks, and a reduced inventory of missile defense interceptors for several years.
SM-6 missiles are critical anti-air and anti-surface warfare munitions that have been successfully fired from various US Navy ship-based platforms and land-based launchers.
