Raytheon Secures $1.7B U.S. Army Contract Modification for Missile Defense Systems

Raytheon has been awarded a $1.7B modification to a US Army contract to support the production of Lower Tier Air and Missile Defense Systems. This brings the total face value of the contract to $3.79B. The modification will support the low-rate initial production of the system.

Raytheon Technologies Corporation (RTX) has been awarded a $1.7 billion modification to an existing U.S. Army contract, bringing the total face value of the contract to $3.79 billion. The modification will support the low-rate initial production of Lower Tier Air and Missile Defense Systems. The work will be performed in Andover, Massachusetts, with an estimated completion date of December 28, 2029 [2].

This contract modification aligns with Raytheon's strategic focus on defense infrastructure and air and missile defense systems. The company's robust defense backlog, which includes programs like AIM-9X missiles and SPY-6 radar, underscores its commitment to long-term revenue stability and geopolitical tensions [1].

The contract, which was awarded in 2025, will be executed by Raytheon's subsidiary, Raytheon Missiles & Defense. The company's recent financial performance has shown strong growth in defense sales across its segments, with Pratt & Whitney's F135 division and Raytheon's defense systems contributing significantly to this growth [1].

Raytheon's stock has experienced a decline in trading volume recently, with a 42.87% drop on August 25, 2025, ranking it 221st in market activity. Despite this, the company's strategic positioning and strong defense backlog suggest continued potential for growth [1].

In summary, this contract modification is a significant addition to Raytheon's defense portfolio, supporting its role in the U.S. Army's air and missile defense systems. The modification aligns with the company's strategic focus on defense infrastructure and long-term revenue stability.

References:
[1] https://www.ainvest.com/news/raytheon-surges-2-88b-35-contract-trading-volume-plunges-42-87-stock-slides-221st-market-activity-2508/
[2] https://seekingalpha.com/news/4490241-raytheon-awarded-1_7b-u-s-army-contract-modification