Raytheon, a business unit of RTX (NYSE: RTX), has been awarded a $1.8 billion contract extension for SPY-6 radar systems for the U.S. Navy, according to a company press release. The deal builds on an initial hardware production and sustainment contract awarded in March 2022. If all options are exercised, the cumulative value of the contracts would reach $3.3 billion.

The SPY-6 radar is currently aboard two commissioned U.S. Navy ships and installed on 11 others undergoing testing. The system is expected to be deployed on more than 50 Navy ships over the next decade.

Raytheon says it has invested more than $800 million to modernize its radar manufacturing facilities in Andover, Massachusetts, and states it is positioned to double SPY-6 production output by 2028.

"This contract extension reflects the Navy's confidence in our ability to deliver advanced, reliable and scalable radar solutions," said Barbara Borgonovi, president of Naval Power at Raytheon.

The company also said it is expanding its engineering workforce in Andover to support the program. RTX reported 2025 sales of more than $88 billion and is headquartered in Arlington, Virginia.