RTX Awarded $515.8M Contract to Advance SPY-6 Shipboard Radar Integration and Production
0xBroomberg
Raytheon, RTX's missile-and-defense arm, landed a $515.8 million cost-type contract modification to keep SPY-6 radar integration and production on track — with Germany covering 26%, signaling the next-gen radar is moving from a U.S.-only asset to an allied standard.
Where does the money come from?
The contract modification totals $515.8 million — the U.S. Navy funds 74%, Germany covers 26% through a Foreign Military Sales (FMS) channel.
Actual funds obligated at award: $121.5 million, split among R&D ($51.6M), operations and maintenance ($17.5M), German FMS funds ($3.4M), and multi-year shipbuilding and procurement accounts spanning FY2017–FY2026.
This means → cash arrives across multiple fiscal years; $17.5 million expires at the end of this fiscal year. The contract also reserves terms for future foreign customers beyond Germany.
What is SPY-6, and why does it matter?
SPY-6 (AN/SPY-6(V)) is an active electronically scanned array radar — AESA, a radar that uses thousands of tiny transmit-receive modules to scan simultaneously — replacing the aging AN/SPY-1 at the heart of the Aegis combat system.
In plain terms = the old radar listens passively; the new one actively scans. It is 30× more sensitive than AN/SPY-1D(V), tracks 6× more targets at once, and detects objects half the size at twice the range.
It handles ballistic missiles, cruise missiles, hypersonic threats, enemy aircraft, and surface ships — and fits seven vessel classes, from frigates to carriers.
Where does this contract sit in the procurement chain?
The anchor is a March 2022 framework contract worth up to $3.2 billion over five years, covering hardware, production, and sustainment.
Orders have stacked up since: $423M in 2022, $619M in 2023, then $677M for seven radars — bringing the Pentagon's cumulative SPY-6 order book to 38 units.
In June 2025 Raytheon added a $536M follow-on to upgrade Arleigh Burke Flight IIA destroyers with the SPY-6(V)4 variant. This means → the latest $515.8M is one more link in a steady production ramp, not a standalone award.
What does Germany's involvement signal?
Germany's 26% cost share is the clearest sign yet that SPY-6 is attracting allied buyers beyond the U.S. Navy.
This reflects a shift: the next-gen shipboard radar is moving from a domestic program toward an alliance-wide standard — and the contract explicitly reserves terms for additional foreign customers.
Earlier this year RTX signed five milestone framework agreements with the Pentagon to sharply expand production of Standard interceptors, Tomahawk cruise missiles, and AMRAAM air-to-air missiles. This means → radar scale-up and munitions scale-up are running in parallel — RTX's defense order pipeline is accelerating across the board.
Content is for reference only, not financial advice.