Key insights
- Raytheon's $515 million U.S. Navy contract for SPY-6 radars, including upgrades for destroyers and potential international sales, reinforces its strong position in the Aerospace & Defense sector. The company's significant investment in manufacturing capacity and semiconductor production for these advanced radar systems suggests robust future revenue streams. While RTX is trading slightly above fair value, this contract signals continued demand and operational expansion for a key defense contractor.
ANDOVER, Mass. - Raytheon, a business unit of RTX (NYSE:RTX), received a $515 million contract from the U.S. Navy for its SPY-6 family of radars, according to a press release statement issued today.
The sole source award follows an Integration and Production Support contract awarded in June 2025. The new contract includes upgrading Flight IIA destroyers with the SPY-6(V)4 variant.The contract bolsters RTX’s position as a prominent player in the Aerospace & Defense industry, according to InvestingPro analysis. The company reported revenue of $90.4 billion over the last twelve months with a market capitalization of $234.7 billion.
Raytheon will provide continued support for the SPY-6 radar family to the U.S. Navy and the government of Germany, with potential additions of other countries through the Foreign Military Sales program.
The SPY-6 radar is currently aboard two commissioned U.S. Navy ships and installed on 11 others undergoing various testing stages. The Navy expects to deploy SPY-6 on more than 50 ships over the next decade for defense against air, surface, ballistic and electronic warfare threats.
Barbara Borgonovi, president of Naval Power at Raytheon, stated the company has invested $800 million to modernize its radar manufacturing facilities and expects to double SPY-6 output by 2028.
The radars are manufactured at Raytheon’s Radar Development Facility in Andover, Massachusetts, a 30,000-square-foot site that includes a gallium nitride foundry for producing semiconductors used in SPY-6 and other radar systems.InvestingPro data indicates RTX is currently trading slightly above its Fair Value, placing it on the platform’s most overvalued stocks watchlist. Investors can access comprehensive valuation metrics and exclusive Pro Research Reports for RTX and 1,400+ other US equities.
RTX reported 2025 sales of more than $88 billion and employs over 180,000 people globally. The company is headquartered in Arlington, Virginia.
In other recent news, RTX Corp. has seen several notable developments. S&P Global Ratings upgraded its outlook on RTX to positive from stable, citing strong aerospace demand and a robust defense product market that supports cash flow. The ratings firm expects RTX to maintain leverage below 2.5x and funds from operations to debt above 30%. Additionally, Raytheon, an RTX business, secured a $1.02 billion contract with the U.S. Department of War for NASAMS fire units, funded through fiscal 2026 Foreign Military Sales for Kuwait.
In another development, Raytheon and Northrop Grumman received a phase two contract from DARPA to advance rocket motor technology under the Burn n’ Go program. RTX’s BBN Technologies division demonstrated a self-healing military communications system, PACE4ACE, which reroutes network traffic when disrupted. Furthermore, Raytheon completed the preliminary design review for NASA’s Landsat Next Instrument Suite, validating its technical approach and engineering design. These recent activities highlight RTX’s ongoing involvement in defense and aerospace advancements.
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