Raytheon Co. (NYSE:RTN) has secured a significant $299.7 million contract modification from the U.S. Department of Defense to further develop the Evolved SeaSparrow Missile (ESSM) Block 2 program. This contract amplifies Raytheon’s role in enhancing naval missile systems.

The firm-fixed-price modification will fund the acquisition of test equipment, spares, and Guided Missile Assemblies, indicating a pivotal step within the multilateral ESSM initiative aimed at upgrading ship self-defense capabilities against modern threats.

Global Operations Spread Across 23 Locations

The contract’s execution involves multiple global sites:

• Tucson, Arizona (12%)

• Edinburgh, Australia (11%)

• Mississauga, Canada (10%)

• San Jose, California (9%)

• Raufoss, Norway (8%)

These international hubs reflect the collaborative nature of the ESSM project involving 12 NATO members and other allies.

Contract Timeline and Funding Allocation

The contract is anticipated to be completed by September 2030. The funding breakdown includes:

• $283.7 million from fiscal 2025 Navy weapons procurement

• $7 million from fiscal 2025 customer funds

• $5.4 million from fiscal 2024 Navy weapons procurement

• $3.5 million from fiscal 2024 customer funds

The Naval Sea Systems Command in Washington, D.C., oversees the contract (N00024-24-C-5408).

Raytheon’s Strategic Positioning

This deal fortifies Raytheon’s position as a leading supplier of advanced missile technology against a backdrop of rising global defense budgets. Investors can review defense sector performance trends through the Company Rating API, providing insights into companies like Raytheon.

As geopolitical tensions persist, enduring defense contracts like this ensure long-term revenue visibility for Raytheon, aligning with sustained defense modernization trends.