Raytheon, Department of War to Scale Missile Production Under Multiple Agreements

Raytheon, an RTX business, has reached a set of long-duration framework agreements with the Department of War intended to support sustained increases in U.S. missile production capacity.

The agreements establish multi-year structures—spanning up to 7 years—that will enable higher production rates and faster delivery timelines across several missile programs critical to U.S. and allied forces, RTX said Wednesday. Rather than serving as direct procurement actions, the arrangements are designed to align government demand with investments in facilities, the workforce and supply chains.

“These agreements redefine how government and industry can partner to speed the delivery of critical technologies and are a direct result of the administration’s Acquisition Transformation Strategy and commitment to deliver the best technologies faster,” said RTX CEO Chris Calio.

“We are proud to support the department’s Arsenal of Freedom to ensure the United States and its allies and partners have the decisive edge — now and in the future,” added Calio, who also serves as RTX’s chairman.

What Production Areas Are Covered by the Raytheon-DOW Agreements?

Under the agreements, Raytheon expects Tomahawk cruise missile output to exceed 1,000 per year; Advanced Medium-Range Air-to-Air Missile production to reach at least 1,900 annually; and Standard Missile-6 production to surpass 500 units per year.

The company will also accelerate production of the SM-3 Block IB interceptor and increase output of the SM-3 Block IIA variant. Raytheon projects production rates could double or even quadruple from current levels.

Manufacturing will be carried out at Raytheon facilities in Tucson, Arizona; Huntsville, Alabama; and Andover, Massachusetts.

How Do These Agreements Build on Existing Missile Programs?

The framework agreements build on a series of recent large-scale missile contracts Raytheon secured.

The Missile Defense Agency previously awarded RTX a firm-fixed-price contract valued at up to $1 billion for SM-3 Block IB all-up rounds, as well as a separate contract worth up to $1.94 billion to manufacture SM-3 Block IIA interceptors for the U.S. and Japan. Raytheon also received a multibillion-dollar contract modification supporting engineering and sustainment of SM-3 variants.

For SM-6, the U.S. Navy awarded Raytheon production contracts totaling more than $900 million, covering missile manufacturing, spares and round design agents, with work extending through 2030 if all options are exercised.