Raytheon, operated under RTX, has secured a seven-year production framework with the U.S. Department of Defense that substantially raises output targets for a suite of missiles and interceptors, the company announced on Wednesday. The agreement is part of a Pentagon effort to rebuild weapons inventories that have been drawn down.
Under the terms, annual Tomahawk cruise missile production for the U.S. is planned to expand from the current level of about 60 units per year to an eventual rate of 1,000 units annually. The Tomahawk system - launched from ships and submarines - is a key long-range precision strike weapon for naval forces. The contract also accommodates a land-based variant of the Tomahawk, which provides long-range strike capability for ground units.
RTX said AMRAAM air-to-air missile production will increase to at least 1,900 units per year. The AMRAAM is the primary beyond-visual-range air-to-air missile used by U.S. Air Force and Navy platforms.
The company also reported plans to boost output of naval ballistic missile interceptors. Production rates for SM-3 Block IB and SM-3 Block IIA interceptors are expected to rise, with many munitions increasing to two to four times their current output levels. SM-3 interceptors are naval systems designed to intercept short- to intermediate-range ballistic missiles in space.
Production of the SM-6 interceptor would grow to more than 500 units annually, up from roughly 125 at present. The SM-6 delivers a blend of air defense, anti-ship warfare and ballistic missile defense capabilities in a single weapon.
RTX described the contracts as employing a "collaborative funding approach" that aims to preserve upfront free cash flow for the company while enabling investment in longer-term production capacity. The company said production work will take place at Raytheon facilities in Tucson, Arizona; Huntsville, Alabama; and Andover, Massachusetts. RTX did not disclose a dollar value for the agreements.
The deals are consistent with recent multi-year arrangements between the U.S. government and large defense firms that lock in demand over an extended horizon, giving companies the certainty required to deploy billions of dollars in new facilities and equipment. Similar framework contracts signed by Lockheed Martin this month include plans to increase THAAD interceptor production to 400 units annually and raise Patriot PAC-3 missile output to 2,000 per year under seven-year terms.
The Pentagon's push to expand production is presented as a response to the need to replenish depleted inventories. The agreements follow policy efforts aimed at accelerating weapons delivery - including an executive order signed in January that links defense firms' dividends, share buybacks and executive pay to weapons delivery schedules, a step that has introduced uncertainty around capital returns for the sector.
"These agreements redefine how government and industry can partner to speed the delivery of critical technologies," RTX CEO Chris Calio said in a statement.
Although the contracts set elevated output targets and identify manufacturing locations, the company did not release contract financials or detailed implementation timelines beyond the seven-year framework. The pace at which production ramps up and the ultimate cost structure will depend on the planned investments and the collaborative funding arrangements between RTX and the Department of Defense.