$1.2 billion Raytheon contract doubles up on German Patriot missile system order

Raytheon, the division of RTX (NYSE: RTX) whose missile and defense operation is based in Tucson, recently won a $1.2 billion contract to provide more Patriot air and missile defense systems for the German military.

It’s Raytheon’s second contract this year to provide the missiles to Germany — the previous one, announced in March, was worth $1.2 billion.

Raytheon said the deal calls for additional Patriot major end items, such as Configuration 3+ radars, launchers, command and control stations and spare parts, as well as support. The systems will augment Germany’s existing air defense infrastructure, the defense contractor said.

Under the new contract, Raytheon will deliver four Patriot fire units, according to a report by Defense News.

The Patriot system is capable of defeating advanced long-range cruise missiles, tactical ballistic missiles and various air-breathing weapons, which are designed to reach hypersonic speeds.

Patriot is the only such system that is combat-proven, Raytheon said. It involves radars and multiple kinds of intercepters against threats and has intercepted more than 150 ballistic missiles in combat operations around the world, the company said, with most of those using Raytheon’s Guidance Enhanced Missile surface-to-air weapons.

“Patriot remains the tried-and-true stalwart of air and missile defense, relied upon by our global customers to deter aggression and defend their interests,” said Tom Laliberty, president of Land and Air Defense Systems at Raytheon, in a statement. “With each additional Patriot system, Germany is enhancing its own air defenses and strengthening NATO’s defense posture.”

The Patriot system is in use by 19 countries, including the U.S., Germany and Ukraine, which has used the weapons to fight off an invasion by Russia since early 2022.

Other recent Raytheon contracts include AMRAAM program work

In addition to the latest Patriot system order, Raytheon’s Tucson operation has won several other contracts totaling some $88 million in recent weeks. They include:

• On July 15, a $14,455,937 million Air Force contract for Raytheon was announced for the Advanced Medium Range Air-to-Air Missile (AMRAAM) development lab management and maintenance program. The contract provides for the development branch of the Air Intercept Missile-120 AMRAAM that will manage the design, development, integration, and testing of hardware and software improvements to the AMRAAM. Work will be performed in Tucson and is expected to be completed by Feb. 28, 2026.

Raytheon won a contract for more than $1.15 billion in June 2023 to continue its work in the AMRAAM program for the Air Force, Navy and foreign militaries. Since then it has completed successful tests involving the system in July 2023 and in September 2023, and again in February of this year.

The AMRAAM program is part of the U.S. military’s Form, Fit, Function Refresh program — also known as F3R — that updates missile hardware and allows for software upgrades.

• On July 1, the U.S. Department of Defense announced Raytheon was awarded a $20,379,092 Air Force contract modification to a previously awarded Hypersonic Attack Cruise Missile-Southern Cross Integrated Flight Research Experiment task order. The modification provides for the procurement of additional hardware. Work will be performed in Tucson and is expected to be complete by March 22, 2027.

• The DOD also announced on June 28 that Raytheon was awarded a $27,359,086 modification to a previously awarded contract to procure 24 mid-body range safety subsystem kits and flight test kits in support of Tactical Tomahawk missiles for the U.S. Navy, Army, and Marine Corps. Most of the work will be performed in Tucson and is expected to be completed in May 2027.

• On June 26, the DOD announced that Raytheon was awarded a $26,213,906 modification to a previously awarded U.S. Navy contract to exercise options for engineering and technical support for the Evolved SeaSparrow Missile and NATO SeaSparrow Missile Systems programs. The modification combines purchases for the Navy and the governments of Japan, and Chile under the Foreign Military Sales program. Most of the work will be performed in Tucson and is expected to be completed by December 2025.