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RTX subsidiary Raytheon has signed five major long-term agreements with the United States Department of Defense to sharply lift production of key precision-guided munitions, following mounting political pressure from President Donald Trump and Secretary of War Pete Hegseth on major defence contractors to expand output.
The framework agreements, running for up to seven years, cover increased production of Tomahawk cruise missiles, Advanced Medium Range Air-to-Air Missiles (AMRAAM), Standard Missile-3 (SM-3) Block IB and Block IIA interceptors, and the Standard Missile-6 (SM-6). They are intended to boost manufacturing capacity, shorten delivery timelines and give industry the certainty needed to invest at scale.
The deals come after the Trump administration repeatedly criticised elements of the US defence industrial base for what it described as slow production rates and an overreliance on peacetime manufacturing models, amid rising global demand for advanced munitions. President Trump and Secretary Hegseth have both publicly warned defence primes that the United States expects faster output and greater surge capacity as part of a broader push to restore what the administration calls America’s “warfighting readiness”.
Under the new agreements, RTX expects annual production of Tomahawk missiles to increase to more than 1,000, AMRAAMs to at least 1,900 and SM-6 missiles to more than 500. Production of the SM-3 IIA will also rise, while output of the SM-3 IB will be accelerated. In several cases, production rates are set to double or even quadruple compared with current levels.
RTX said the agreements build on substantial investments already made in facilities, technology and workforce expansion, aimed at sustaining historically high production rates over the long term.
“These agreements redefine how government and industry can work together to deliver critical capabilities faster,” RTX chief executive and chairman Chris Calio said.
“They reflect the administration’s acquisition reform agenda and its clear expectation that industry step up. We’re proud to support the Arsenal of Freedom and ensure the United States, its allies and partners maintain a decisive edge.”
Manufacturing under the agreements will take place at Raytheon sites in Tucson, Arizona; Huntsville, Alabama; and Andover, Massachusetts. RTX said the associated investments are already factored into its 2026 financial outlook, with a collaborative funding model designed to preserve near-term cash flow while enabling long-term capacity growth.
These manufacturing efforts will include key Raytheon technologies including the Tomahawk cruise missile, a long-range ship and submarine-launched weapon capable of striking targets more than 1,600 kilometres away, including in heavily defended airspace. It has been flight-tested more than 550 times and used operationally on more than 2,300 occasions, often as the opening strike option for US and allied forces, including the Royal Australian Navy.
AMRAAM is the world’s most widely used air-to-air missile and is in service with more than 40 allied nations. Raytheon has been producing the latest fifth-generation variant since 2024, featuring upgraded guidance, software-defined functions and enhanced electronic protection. It is integrated across both fourth and fifth-generation aircraft and also serves as the primary interceptor for NASAMS ground-based air defence systems.
The SM-3 Block IB is a combat-proven interceptor designed to destroy short to intermediate-range ballistic missiles outside the atmosphere using hit-to-kill technology. It can be launched from ships or land-based sites and was used operationally for the first time in April 2024 to intercept Iranian ballistic missiles aimed at Israel.
The SM-3 Block IIA, developed jointly by the United States and Japan, features larger rocket motors and an upgraded kinetic warhead, allowing it to defend wider areas against more advanced ballistic missile threats.
The SM-6 is a multi-role missile capable of air defence, anti-surface warfare and terminal ballistic missile defence. It has been successfully fired from a range of US Navy ships and from land-based launchers, offering allied forces a flexible and cost-effective way to boost combat power.
With global demand for advanced munitions continuing to rise, the Pentagon sees the agreements as central to the Trump administration’s push to rebuild surge capacity and ensure the United States, and its allies can sustain high-intensity operations in a major conflict.
Stephen Kuper
Steve has an extensive career across government, defence industry and advocacy, having previously worked for cabinet ministers at both Federal and State levels.
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