RTX to Boost Missile Output 2–4x Under $70B Pentagon Deals

US-based RTX plans to raise production of Tomahawk, AMRAAM, SM-6 and SM-3 Block IB missiles by two to four times under multiyear contracts worth about $70 billion signed with the US Department of War.

What the Company Said

RTX CEO Chris Calio said on the October 20 earnings call that the deals total about $70 billion and give Raytheon nearly a decade of demand visibility. The Tomahawk and AMRAAM contracts were booked in the third quarter, while the SM-6 and SM-3 Block IB contracts were signed earlier this month and will appear in fourth-quarter bookings.

An SM-6 missile launched from the destroyer USS Daniel Inouye — An SM-6 launched from USS Daniel Inouye. Photo: US Navy / Mark Wright (DVIDS, public domain).

Production Targets

The February framework set goals of more than 1,000 Tomahawks, at least 1,900 AMRAAMs and more than 500 SM-6 missiles per year. Calio said the company aims to raise these rates anywhere from two to four times. The figures are targets, not current output, so significant additional capacity will be needed.

Contract Terms

According to reports, the Tomahawk agreement runs seven years, while the AMRAAM, SM-6 and SM-3 Block IB contracts run five years with two one-year options. Because values depend on funding, options and contract execution, they should not be read as guaranteed revenue.

For the role of the AMRAAM, see our explainer What Is the AIM-120 AMRAAM?.

Originally reported by Envanter Medya.