(Reuters) - Raytheon Technologies (NYSE:RTX) on Monday said it was awarded a $264 million modification contract from the United States Navy to produce and deliver 571 short-range AIM-9X Sidewinder missiles.
The company said this was a modification to a production Lot 23 contract, that was originally awarded to the defense company in Dec. 2022.
Raytheon (NYSE:RTN) added it would also produce associated parts for the U.S. Navy, U.S. Air Force, and its foreign military sales customers, as well as provide captive air training systems, containers, related kits and support equipments for the missiles.
The U.S. aerospace giant said that majority of work is expected to be completed in August 2026.
Separately, RTX expects to take a $500 million hit to free cash flow due to a supply chain problem with the GTF engine made by its Pratt & Whitney subsidiary, the company said during an investor day on Monday.