The U.S. Department of Defense (DOD) has awarded Raytheon Co. (NYSE:RTX) a massive $5.04 billion contract for the Coyote Missile System.
DOD Awards Coyote Missile Contract Under Trump's $1Trillion Budget
On Monday, the DOD announced the contract, covering fixed and mobile launchers, kinetic and non-kinetic interceptors, as well as Ku-band radio frequency radar systems, reported Newsweek. The contract was granted after an online solicitation that received just a single bid. Oversight will be provided by the Army Contracting Command at Redstone Arsenal, Alabama, with the contract expected to run through September 28, 2033.
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This contract plays a key role in President Donald Trump‘s missile defense strategy and arrives as the White House proposes a $1.01 trillion national defense budget for fiscal year 2026—a 13.4% increase emphasizing missile defense, homeland security, and countering threats in the Indo-Pacific region.
The Coyote Missile System contract is part of the fiscal year 2026 defense budget's $25 billion allocation for the ‘Golden Dome for America’ missile defense initiative. Overall, the Pentagon's budget designates $197.4 billion for the Army, $292.2 billion for the Navy, $301.1 billion for the Air Force, and $170.9 billion for defense-wide programs.
Raytheon Strengthens Defense Ties With New Missile Contracts
The contract comes on the heels of Raytheon’s recent strategic moves to bolster its defense portfolio.
In September 2025, the company expanded its partnership with Avio USA to accelerate the development of the Mk 104 dual-thrust rocket motor, a crucial component of its Standard Missile program. This expansion, worth up to $26 million, aimed to fund engineering and production work.
Earlier in August, Raytheon also agreed to join Diehl Defence to produce components of the Stinger missile in Europe. This partnership was seen as a significant step in expanding the production of the widely used air defense weapon as demand increases globally.
Benzinga's Edge Rankings place Raytheon in the 73rd percentile for quality and the 21st percentile for value, reflecting mixed performance. Check the detailed report here.
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