Raytheon Co. (NYSE:RTN) has been awarded a $299.7 million contract modification by the U.S. Department of Defense to advance the Evolved SeaSparrow Missile (ESSM) Block 2 program, expanding the defense contractor's role in enhancing naval missile capabilities.

The firm-fixed-price modification will support the procurement of test equipment, spares, and Guided Missile Assemblies, marking another key milestone in the multilateral ESSM initiative aimed at improving ship self-defense against modern threats.

Global Execution Across 23 Locations

The contract work will be distributed globally:

• Tucson, Arizona (12%)

• Edinburgh, Australia (11%)

• Mississauga, Canada (10%)

• San Jose, California (9%)

• Raufoss, Norway (8%)

These key hubs, along with 18 other named locations and numerous smaller sites, reflect the international nature of the ESSM partnership, which includes 12 NATO members and other allies.

Timeline and Funding Breakdown

The contract is scheduled for completion by September 2030. Funding allocation 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., is overseeing the contract (N00024-24-C-5408).

Raytheon's Strategic Outlook

This deal strengthens Raytheon's standing as a key supplier of advanced missile systems amid growing global defense budgets. Investors and analysts monitoring defense sector performance can view broader equity trends using the Company Rating API, which provides real-time assessments of firms like Raytheon based on multiple financial and qualitative metrics.

As geopolitical tensions remain elevated, multi-year defense contracts such as this provide long-term revenue visibility, positioning Raytheon to benefit from sustained defense modernization initiatives.