The Navy contract modification funds AIM-9X production and delivery through 2029. RTX's backlog grows with low-execution-risk work ahead of Q2 earnings.
The U.S. Navy awarded RTX's Raytheon unit a contract modification worth up to $1.11 billion for continued production and delivery of AIM-9X Sidewinder missiles. The award covers all domestic and foreign military sales variants of the short-range air-to-air weapon.
Work continues at Raytheon's Tucson, Arizona facility and other sites. Deliveries run through 2029. The AIM-9X equips F-16, F-15, F/A-18 and F-35 fighter fleets across the U.S. and allied air arms.
For RTX, the modification adds to a defense backlog that stood near $80 billion at the end of the first quarter. The award funds a specific production lot and associated support. It does not change the program's overall ceiling.
The Pentagon has been replenishing munitions inventories after transfers to Ukraine and other theaters. The AIM-9X has appeared in those aid packages. Foreign military sales accounted for a significant portion of the modification's value. The exact split between U.S. and international orders was not disclosed.
RTX shares closed at $117.43 on the day of the announcement, up 0.3%. The stock has gained roughly 12% year to date, tracking the broader defense sector's rally on elevated geopolitical risk and sustained budget growth. RTX's Alpha Score sits at 53 out of 100, a neutral reading that reflects mixed momentum and valuation signals.
The AIM-9X program faces no near-term competitive threat. The missile's infrared seeker and thrust-vectoring control give it advantages over radar-guided alternatives in close-range engagements. No replacement program is in active development. Production rates have been stable for several years.
Raytheon's defense backlog provides multiyear revenue coverage. Margin pressure from fixed-price development contracts on other programs has been a recurring investor concern. The AIM-9X modification, being a production award with established cost curves, carries lower execution risk than the company's next-generation missile or directed-energy programs.
The Navy expects to obligate funds incrementally across fiscal years 2025 through 2028. The modification includes options that, if exercised, would bring the total value to the full $1.11 billion figure. The base award covers the first tranche of production and support.
RTX is scheduled to report second-quarter earnings on July 25.
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