Raytheon will produce thousands of missiles annually for the US as part of a massive arms program
Australian destroyer HMAS Brisbane test-fired a US Tomahawk cruise missile off the US west coast on December 10, 2024. Illustrative image. PHOTO: Handout / AFP / Profimedia
Raytheon, a division of defense conglomerate RTX, has reached a seven-year deal with the Pentagon to increase production of Tomahawk missiles, air-to-air missiles and ballistic missile interceptors, the company said on Wednesday, as cited by Reuters.
The Pentagon's push to expand production capacity comes as Washington rushes to replenish some of its depleted weapons stockpiles.
The agreements follow similar deals brokered between President Donald Trump's administration and the biggest US defense contractors that guarantee government demand over several years, giving companies the confidence to invest billions of dollars in new facilities and equipment.
The contracts signed last month by Lockheed Martin signal a shift in defense procurement strategy aimed at rebuilding America's industrial capacity to sustain a high-intensity war.
Huge increase in production capacity for Tomahawk missiles
The agreements with Raytheon aim to increase annual production of Tomahawk cruise missiles from the current rate of about 60 per year for the US to an eventual level of 1,000 units annually. A staple of the US Navy's surface fleet, the sea-launched Tomahawk provides long-range precision strike capabilities against land, ship and submarine targets.
The land variant of the Tomahawk, a more recent addition to the arsenal, gives land units similar long-range strike options. Ukraine strongly requested Tomahawk missiles from the United States last year, but President Donald Trump appeared to rule that out for good in comments made in early November.
As for AMRAAM air-to-air missiles, RTX said in a statement released Wednesday that production for the U.S. will increase to at least 1,900 units. AMRAAM, primarily used by the US Air Force and Navy, is the US military's primary air-to-air missile for beyond-visual-range engagements.
RTX also stated that production rates of the SM-3 Block IB and SM-3 Block IIA ballistic missile interceptors will also increase, with many types of munitions expected to increase production two to four times over current levels. The SM-3 Block IB and Block IIA interceptors, both US Navy systems, are designed to destroy short- and medium-range ballistic missiles in outer space.
What other weapons has the US government ordered from Raytheon
Production of SM-6 interceptors will increase to more than 500 units, from about 125 currently. The SM-6 provides the US Navy with air defense, anti-ship combat and ballistic missile defense capabilities in a single weapon.
RTX said the agreements include a “collaborative financing approach” designed to maintain initial free cash flow while allowing RTX to invest in long-term manufacturing capacity.
The deal comes as President Trump seeks to shake up the defense industry and force it to deliver weapons faster. In January, he signed an order tying defense company dividends, share buybacks and executive pay to arms delivery timelines, introducing uncertainty about capital returns.
“These agreements redefine how government and industry can work together to accelerate the delivery of critical technologies,” RTX CEO Chris Calio said in the release. The company did not specify the financial value of the contracts.
Production will take place at Raytheon facilities in Tucson (Arizona), Huntsville (Alabama) and Andover (Massachusetts).
The framework agreements follow similar deals signed this month by Lockheed Martin to quadruple production of THAAD interceptors to 400 units annually, and to increase Patriot PAC-3 production to 2,000 units per year under seven-year contracts.
