Raytheon has received a U.S. Navy contract worth up to $24.4 billion for SM-6 missiles, a weapons program whose manufacturing network includes the company’s Andover facility.

The agreement, announced Oct. 1, covers five years and includes two additional option years, according to RTX, Raytheon’s parent company. The announced figure represents the contract’s maximum potential value.

Andover produces major SM-6 components, while final integration and testing occur in Huntsville, Alabama, according to The National Interest. The missile supports air defense, attacks on surface targets and ballistic missile defense.

The award follows five production framework agreements announced in February. Those agreements set a target of more than 500 SM-6 missiles annually and identified Andover, Tucson, Arizona, and Huntsville as locations supporting broader missile production increases.

Andover expansion supports radar production

Raytheon also has a separate construction project underway for radar production in Andover.

In October 2025, the company announced that it had broken ground on a $53 million, 23,000-square-foot addition to its Lower Tier Air and Missile Defense Sensor facility. At the time, RTX projected that construction would finish in late 2026.

The company’s local radar business received another boost in July, when Raytheon announced a $1.8 billion extension of its Navy SPY-6 production and sustainment contract. Options could increase the cumulative value to $3.3 billion. RTX said it was expanding its Andover engineering workforce to support that program.

Town bond filings listed roughly 10,000 Raytheon employees in Andover in 2024, compared with 4,750 in 2015, according to Andover News.

The SM-6 announcement also followed another major missile award. On Sept. 28, RTX announced a separate AMRAAM contract worth up to $20.7 billion, also covering five years with two option years.