Raytheon secures $381 million contract for Tomahawk missile work

Investing.com -- Raytheon Co. (NYSE: RTX) has been awarded a $380.8 million contract modification for work on Tomahawk missiles, the U.S. Department of War announced.

The fixed-price incentive and firm-fixed-price modification definitizes the contract for a total of $476.5 million and adds scope for Lot Five and Lot Six recertification and modernization of Tomahawk missiles, depot operations, recertification hardware, and Tomahawk spares and replacement components.

Work will be performed across multiple U.S. locations, with the largest portions in Tucson, Arizona (30%), Boulder, Colorado (28%), and Pontiac, Michigan (11%). The project is expected to be completed by April 2029.

The contract will be funded through fiscal 2024 and 2025 procurement funds from various military branches, including $202.1 million from Navy weapon procurement and $155 million from fiscal 2025 Navy weapon procurement. Foreign Military Sales funds account for $99.4 million of the total.

In a separate award, Raytheon received a $59 million cost-plus-fixed-fee modification to a previously awarded contract for Standard Missiles 2 and 6 engineering and technical support. This contract involves Foreign Military Sales to Australia, Chile, Denmark, and South Korea.

The Standard Missiles work will be performed in Tucson, Arizona, with completion expected by March 2028. Funding comes from fiscal 2026 Navy research and development funds (50%) and Foreign Military Sales funds from South Korea (25%), Chile (10%), Denmark (10%), and Australia (5%).

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