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Raytheon
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Raytheon

US defence contractor; direct €3.2bn German contract for GEM-T Patriot interceptors opens a non-FMS Ukraine supply route.

Raytheon's GEM-T Patriot interceptors anchor Western air defence for Ukraine and the Gulf. Germany signed a direct €3.2 billion commercial contract with Raytheon on 14 April 2026, opening a non-FMS supply route that still cannot stop the ballistic missiles Ukraine most needs.

Last refreshed: 12 August 2026 · Appears in 4 active topics

Key Question

Does Germany's direct Raytheon contract get Patriot interceptors to Ukraine faster than the US queue?

Timeline for Raytheon

#174 17 Aug

Won the $22.9bn Tomahawk production contract

Iran Conflict 2026: Navy buys seven years of Tomahawks
#174 14 Aug

Signed a framework agreement to increase SM-3 component production

Iran Conflict 2026: SM-3 deals announced without any numbers
#11 12 Aug

Unveiled the HADALUS uncrewed underwater vehicle

Autonomous Systems: Land & Sea: Raytheon claims 2,000 miles under water
#14 22 Jun

Fired its Coyote HPM Block 3 microwave system in the demonstration.

Drones: Industry & Defence: Hegseth watches five laser weapons fire
View full timeline →

Background

Raytheon builds the Patriot air-defence system and the Coyote counter-drone interceptor family, putting it at the centre of concurrent demand from the Ukraine, Gulf and Indo-Pacific theatres in 2026. On 12 August, Raytheon and Composite Energy Technologies unveiled HADALUS, an uncrewed underwater vehicle the companies say can travel more than 2,000 nautical miles submerged at a fifth of the cost of comparable systems, a claim made at unveiling rather than after independent testing.

The company's air-defence exports have drawn political scrutiny on both sides of The Atlantic. Secretary of State Marco Rubio issued an emergency waiver in March 2026 bypassing congressional review for Gulf arms sales that included Raytheon-built radar and counter-drone systems, while Germany's direct GEM-T Patriot contract the following month opened a supply route to Ukraine that does not require US sign-off.

That export reach sits alongside a cost problem. Raytheon's Patriot and PAC-3 MSE interceptors cost millions of dollars each against drones costing a few thousand, and rivals including AeroVironment are fielding directed-energy weapons pitched at a few dollars per shot, pressure Raytheon's own reusable Coyote demonstration is designed to answer.

Key Issues
Patriot exports

Germany buys Patriot interceptors directly

Germany signed a direct commercial contract worth roughly €3.2 billion with Raytheon on 14 April 2026 for several hundred GEM-T Patriot interceptors, bypassing the US foreign military sales queue that had stalled Ukraine's requests. A new production line is planned at Schrobenhausen.

The next day Zelenskyy told German broadcaster ZDF that Ukraine's Patriot situation "could not be any worse." GEM-T intercepts drones and Cruise Missiles but not the ballistic Iskander and Kinzhal missiles Russia fires at Ukrainian cities; the PAC-3 MSE interceptors that do remained frozen under a separate White House export suspension, leaving Raytheon supplying the deal Berlin could legally sign rather than the one Kyiv actually needs.

Counter-drone interceptors

Coyote interceptors now anchor Raytheon's growth

Raytheon's counter-drone effectors, chiefly the Coyote interceptor family, crossed 40 per cent of the company's Raytheon-segment sales with double-digit growth reported at Q1 2026 earnings on 21 April. The United Arab Emirates received Foreign Military Sales approval for Coyote the same week, and Raytheon demonstrated a non-kinetic, reusable Coyote variant that engages a drone swarm, returns to base, recharges and redeploys. Raytheon's LIDS system set the template rivals are still following: its detect-to-destroy integration won a $1 billion contract in 2022, the logic DroneShield borrowed when it added a kinetic interceptor to its own platform in March 2026.

The reusable-Coyote demonstration answers a cost problem: Patriot and PAC-3 MSE interceptors cost millions each against drones costing a few thousand, and rivals are now pitching directed-energy defence at a few dollars a shot.

Common Questions

Reference

What is the reusable Coyote drone and how does it work?
Raytheon's reusable Coyote is a non-kinetic counter-drone variant that can defeat a drone swarm, return to base, recharge, and redeploy. Unlike standard Coyote interceptors that are single-use, the reusable variant avoids expenditure on each engagement. Raytheon demonstrated it in April 2026 and received UAE Foreign Military Sales approval for Coyote systems.Source: industry-report
What is the difference between GEM-T and PAC-3 Patriot interceptors?
PAC-3 MSE is a hit-to-kill interceptor capable of defeating ballistic missiles. The GEM-T (Guidance Enhanced Missile-Tactical) is an older variant designed primarily for aircraft and Cruise Missiles, not ballistic threats. Zelenskyy confirmed on 15 April that the Germany GEM-T deal does not close Ukraine's Ballistic missile defence gap.Source: event
What is Raytheon's Coyote HPM Block 3?
Coyote HPM Block 3 is Raytheon's high-power microwave counter-drone effector. On 23 June 2026 it was one of five directed-energy weapons, alongside systems from AeroVironment, nLight, Lockheed Martin and Epirus, fired live at White Sands Missile Range for Defence Secretary Pete Hegseth, the first sitting US defence secretary to attend such a demonstration.Source: US DoD
How much of Raytheon's revenue comes from missiles and effectors?
Effectors exceeded 40% of Raytheon segment (within RTX) sales in Q1 2026, with double-digit year-on-year growth reported on 21 April 2026. The Iran conflict and concurrent Ukraine demand drove the increase. RTX also holds a $4.76 billion PAC-3 MSE contract with 94% pre-committed to Foreign Military Sales customers.Source: industry-report
What is Raytheon's role in the Golden Dome missile defence programme?
Raytheon Technologies (RTX) is one of twelve companies awarded a share of the US Space Force's $3.2 billion Golden Dome Other Transaction Authority pool for Space-Based Interceptor prototypes, announced in April 2026. RTX's existing Patriot and Coyote expertise positions it for the effectors layer of the programme.Source: federal-government
Why does Germany have a separate Raytheon Patriot contract outside US Foreign Military Sales?
Germany signed a €3.2 billion direct commercial contract with Raytheon in April 2026 for GEM-T Patriot interceptors for Ukraine, bypassing the US FMS mechanism because the White House Patriot export suspension applies to FMS approvals, not to independently funded commercial contracts. This creates a supply channel to Ukraine that runs outside Washington's export queue.Source: industry-report
Can Raytheon produce enough Patriot interceptors for two wars?
The US produces only 60–65 PAC-3 MSE rounds per month. The .76 billion Lockheed/Raytheon contract runs through 2030. At 94% FMS pre-commitment, Ukraine receives roughly 36 rounds a year through US channels, FAR below its stated monthly need.
How much does Raytheon earn from the Ukraine war?
Raytheon (RTX) benefits from Patriot production demand driven by the Iran war and Ukraine conflict. The US Army awarded a .76 billion PAC-3 MSE contract on 9 April 2026, with 94% pre-committed to foreign military sales customers.Source: US DoD