Raytheon Signs Agreements with US Military to Scale up Long-Term Missile Production

RTX’s Raytheon has signed five long term framework agreements with the United States Department of War aimed to rapidly expand…..
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RTX’s Raytheon has signed five long term framework agreements with the United States Department of War aimed to rapidly expand production of several of the world’s most in demand precision guided munitions, as Washington moves to strengthen its industrial base and accelerate delivery timelines.

The agreements cover Land Attack and Maritime Strike variants of the Tomahawk cruise missile, AMRAAM air to air missiles, Standard Missile 3 Block IB and Block IIA interceptors, and the multi role Standard Missile 6. The frameworks run for up to seven years and are designed to support sustained production growth across all five programmes.

Under the arrangements, Raytheon will increase annual Tomahawk output to more than 1,000 missiles, boost AMRAAM production to at least 1,900 units per year, and raise SM 6 production beyond 500 missiles annually.

Rising Production

Production of the SM 3 Block IIA will also be expanded, while output of the SM 3 Block IB will be accelerated. In several cases, production rates are expected to rise by between two and four times current levels.

RTX said the agreements build on earlier company funded investments in manufacturing capacity and are intended to provide industry with the predictability needed to sustain historically high output rates. The company confirmed that further investment in facilities, workforce development and production technologies will continue in support of the programmes.

RTX Chairman and Chief Executive Chris Calio described the deals as a significant shift in how government and industry collaborate on defence acquisition.

He said: “These agreements redefine how government and industry can partner to speed the delivery of critical technologies and are a direct result of the administration’s Acquisition Transformation Strategy and commitment to deliver the best technologies faster. We are proud to support the department’s Arsenal of Freedom to ensure the United States, and its allies and partners have the decisive edge — now and in the future.”

Collaborative Approach

Production under the agreements will be carried out at Raytheon sites in Tucson, Arizona, Huntsville, Alabama, and Andover, Massachusetts. RTX noted that the associated capital investments are already factored into its 2026 financial outlook. The frameworks also incorporate a collaborative funding approach intended to limit upfront cash flow impacts while enabling long term investment confidence.

The munitions covered by the agreements are central to US and allied force structures. Tomahawk remains a cornerstone long range strike weapon for naval forces, with more than 2,300 operational uses to date. AMRAAM continues to serve as the world’s most widely deployed beyond visual range air to air missile and is integrated across both fourth and fifth generation combat aircraft, as well as ground-based air defence systems.

The SM 3 family provides exo atmospheric ballistic missile defence capability, with the Block IB variant having seen combat use in 2024 during the defence of Israel. The SM 3 Block IIA, developed jointly with Japan, offers extended engagement ranges through larger rocket motors and an enhanced kinetic warhead. Meanwhile, the SM 6 remains the only missile capable of anti-air, anti-surface and terminal ballistic missile defence roles within a single system.

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