Raytheon Signs Long-Term U.S. Defense Agreements to Boost Tomahawk, AMRAAM and Standard Missile Production

Raytheon has signed five major long-term framework agreements with the United States Department of Defense aimed at significantly expanding production capacity for critical missile systems, reflecting sustained U.S. and allied demand for precision-guided munitions.

The agreements, structured to run for up to seven years, focus on increasing annual output and accelerating delivery timelines for several high-demand systems, including Tomahawk cruise missiles, AMRAAM air-to-air missiles, and multiple variants of the Standard Missile (SM) family.

Missiles Covered Under the Agreements

According to Raytheon, the framework agreements encompass:

• Tomahawk Land Attack and Maritime Strike missiles
• AIM-120 AMRAAM air-to-air missiles
• SM-3 Block IB ballistic missile defense interceptors
• SM-3 Block IIA interceptors
• SM-6 multi-mission missiles

These systems form the backbone of U.S. and allied strike, air-defence, and missile-defence architectures across multiple theatres.

Production Targets Signal Sustained High Demand

Raytheon stated that the agreements will enable it to scale production to levels not previously sustained in peacetime. Planned output includes:

• More than 1,000 Tomahawk missiles per year
• At least 1,900 AMRAAM missiles annually
• More than 500 SM-6 missiles per year

The company also plans to increase production of the SM-3 Block IIA while accelerating output of the SM-3 Block IB, both central to U.S. and allied ballistic missile defence missions.

RTX indicated that many of these munitions will see production growth of two to four times current rates, underscoring the structural shift underway in the U.S. defence industrial base.

Industrial Strategy, Not a Short-Term Surge

RTX Chief Executive Chris Calio described the agreements as a departure from traditional procurement cycles, emphasising long-term predictability over episodic surge contracts.

“These agreements redefine how government and industry can partner to speed the delivery of critical technologies,” Calio said, linking the framework directly to the administration’s Acquisition Transformation Strategy.

For industry, such multi-year commitments reduce uncertainty, justify capital investment, and allow workforce expansion without the risk of abrupt post-crisis contraction.

Where the Production Will Take Place

Manufacturing and integration work will be distributed across multiple Raytheon facilities, including:

• Tucson, Arizona
• Huntsville, Alabama
• Andover, Massachusetts

RTX noted that it has already invested heavily in expanding plant capacity and will continue funding facility upgrades, workforce growth, and production automation to sustain what it described as a historically high output rate.

Strategic Context: Munitions as a Bottleneck

The agreements reflect a broader reassessment within the U.S. defence establishment following recent conflicts and rising global tensions. High-end missile stocks—particularly cruise missiles, air-to-air interceptors, and ballistic missile defence assets—have emerged as a critical constraint rather than a marginal issue.

Tomahawk and SM-6 missiles are central to naval strike and air-defence operations, while AMRAAM remains the primary beyond-visual-range air-to-air missile for the U.S. and many allied air forces. SM-3 interceptors underpin missile defence architectures in both the U.S. and allied systems such as Japan’s Aegis fleet.

Implications for Allies and Deterrence Planning

Although the agreements are U.S.-centric, their effects extend beyond the United States. Many allied forces rely on the same missile families, and expanded production capacity improves delivery timelines, stockpile resilience, and operational planning certainty.

From a deterrence perspective, predictable and scalable munitions output reduces the risk that missile inventories become a limiting factor during prolonged crises or high-intensity conflict.

A Structural Shift in Defense Production

Rather than responding to a single contingency, the Raytheon agreements point to a long-term reconfiguration of U.S. weapons production, treating missile manufacturing as an enduring industrial function rather than a surge activity.

The scale and duration of the contracts suggest that Washington is planning for sustained competition, where production capacity itself becomes a strategic asset alongside platforms and personnel.