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Raytheon wins $515 million follow-on Navy deal to support SPY-6 radar production
The Apex Times

THE APEX TIMES

Business/The Apex Times/Jun 7, 10:46 PM EDT

Raytheon wins $515 million follow-on Navy deal to support SPY-6 radar production

The RTX business says the award continues integration and production support for the Navy’s AN/SPY-6 family of maritime radars, including upgrades to Flight IIA destroyers and work tied to Germany’s procurement.

RTX’s Raytheon was awarded a $515 million contract by the U.S. Navy to continue support for the SPY-6 family of radars, the company said in a release dated June 3, 2026.

Raytheon described the new award as a follow-on to an earlier Integration and Production Support contract awarded in June 2025. The contract work includes upgrading Flight IIA destroyers with the SPY-6(V)4 radar variant, according to Raytheon’s statement.

Under what Raytheon called a sole-source award, the company said it will provide continued support for the SPY-6 family to the U.S. Navy, including work that involves the government of Germany. Raytheon added that other countries could be added later under the Foreign Military Sales, or FMS, process.

In remarks included with the announcement, Barbara Borgonovi, president of Naval Power at Raytheon, said SPY-6 is the Navy’s most advanced maritime radar and cited what she called an $800 million investment to modernize Raytheon’s radar manufacturing facilities. She said the company is accelerating production and expects to double SPY-6 output by 2028.

Raytheon said SPY-6 is now aboard two commissioned U.S. Navy ships and installed on 11 other ships that are in various stages of testing. Over the next decade, the company said, SPY-6 is expected to be deployed on more than 50 U.S. Navy ships, supporting defense against air, surface, ballistic, and electronic warfare threats.

The release also tied the program to Raytheon’s Radar Development Facility in Andover, Massachusetts, a 30,000-square-foot site that the company described as vertically integrated and highly automated. Raytheon said the facility includes a gallium nitride, or GaN, foundry that produces the semiconductors it says are essential for SPY-6 and other Raytheon radar systems.

Raytheon did not disclose a contract number, the period of performance, or how many ships will receive specific SPY-6(V)4 upgrades under this $515 million follow-on. The company also did not provide a breakdown of funding by country, ship class, or work category (for example, integration versus testing), in the text of its announcement.

Why It Matters

  • The SPY-6 program is central to the Navy’s layered air and missile defense architecture for surface ships, and continued integration and production support can help sustain schedule pressure across ship modernization efforts.
  • A sole-source follow-on, as described by Raytheon, can reflect the government’s view that continuity of technical integration and manufacturing is important as deployments expand.
  • Raytheon’s manufacturing expansion claims suggest the contractor is trying to translate ramp efforts into higher radar output, which could become a key variable for how quickly new ship installations and upgrades proceed.
  • International participation through Germany and potential future FMS customers highlights how a U.S. naval radar build can feed allied modernization timelines and sustain long-term support revenue streams for the prime contractor.

Sources

Key Facts

  • Raytheon, an RTX business, said it received a $515 million contract from the U.S. Navy for the SPY-6 family of radars.
  • Raythe company characterized the award as a follow-on to an Integration and Production Support contract awarded in June 2025.
  • The work includes upgrading Flight IIA destroyers with the SPY-6(V)4 radar variant.
  • Raytheon said the award includes support for the U.S. Navy and the government of Germany, with potential for other countries under FMS.
  • Raytheon quoted an $800 million investment to modernize radar manufacturing and said it expects to double SPY-6 output by 2028.
  • Raytheon said SPY-6 is on two commissioned U.S. Navy ships and installed on 11 others undergoing testing, with plans for deployment on more than 50 ships over the next decade.

Defense Related

Raytheon wins $515 million follow-on Navy deal to support SPY-6 radar production | The Apex Times