Home Defence Raytheon and DoW sign five deals to boost critical munition production.

Raytheon and DoW sign five deals to boost critical munition production.

by BDR Staff

Raytheon, an RTX business, has signed five landmark framework agreements with the U.S. Department of War aimed at dramatically expanding the production of critical munitions. The multi-year pacts are designed to accelerate deliveries of key missile variants, including Tomahawk, AMRAAM, Standard Missile-3 Block IB and IIA, and Standard Missile-6.

The agreements establish flexible, up-to-seven-year frameworks to boost production capacity in response to rising global demand. Under the terms, RTX will scale annual output of Tomahawks to over 1,000 units, AMRAAMs to at least 1,900, and SM-6 missiles to more than 500. Production rates for these munitions are expected to increase two to four times above current levels. The deals also call for increased output of SM-3 IIA and an accelerated timeline for SM-3 IB production.

These efforts build on prior investments by RTX and reflect a shared commitment with the Department of War to strengthen the defense industrial base and support American jobs. The collaborative funding structure of the agreements is designed to preserve upfront free cash flow, enabling RTX to invest confidently in meeting long-term demand.

RTX Chairman and CEO Chris Calio hailed the agreements as a transformative step in government-industry partnership. “These agreements redefine how government and industry can partner to speed the delivery of critical technologies,” Calio said. “They 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.”

Manufacturing under the new frameworks will take place at Raytheon facilities in Tucson, Arizona; Huntsville, Alabama; and Andover, Massachusetts. RTX continues to invest in technology, infrastructure, and workforce expansion to sustain these historically high production rates. The company’s financial outlook for 2026 already accounts for these investments.

The munitions covered by the agreements are central to U.S. and allied defense capabilities. The Tomahawk cruise missile offers precision strike from over 1,000 miles away, while AMRAAM remains the world’s most widely deployed air-to-air missile, integrated across multiple platforms and proven in combat. SM-3 IB provides exo-atmospheric intercept capability against ballistic missiles, having recently seen combat use in April 2024. SM-3 IIA, developed jointly with Japan, features enhanced speed and range. SM-6 stands out as a multi-mission solution for anti-air, anti-surface, and ballistic missile defense.

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