RTX to Raise Tomahawk, AMRAAM, SM-6 and SM-3 IB Output 2-4x Under Contracts Worth About $70 Billion

RTX Chairman and CEO Chris Calio said on the company’s Oct. 20, 2026 earnings call that four multiyear Pentagon contracts are worth about $70 billion combined and will let Raytheon raise production of Tomahawk, AMRAAM, SM-6 and SM-3 Block IB missiles by two to four times.

What the contracts cover

Calio said the deals give Raytheon almost a decade of demand visibility. In the third quarter RTX booked roughly $23 billion for Tomahawk and more than $14 billion for AMRAAM, after framework agreements for both were converted into multiyear production contracts. The SM-6 and SM-3 IB contracts were signed in October and will appear in fourth-quarter bookings.

He described all four as binding undefinitized contracts that include pricing and delivery schedules, and said RTX is protected if budgets or volumes change.

How production will grow

• Rates are to rise two to four times, with full-rate production across all four munitions around 2030.
• RTX says it has moved into execution: placing orders for tooling and test equipment and lining up the supply chain.
• Raytheon is working with the Department of Defense to simplify testing, make the missiles easier to build, deal with obsolete parts and qualify more suppliers.
• Critical munitions output is up more than 90% so far this year, and Raytheon added 150 new suppliers in 2025.

CFO Neil Mitchill said the contracts produced little revenue in 2026, with more expected in 2027, and that investments will run over the next two to three years.

What was not disclosed

• Annual missile quantities and the ramp for each weapon
• The year-by-year production curve
• How fast output will grow, which Mitchill said depends partly on defense budgets

The framework agreements announced in February 2026 cited annual targets of more than 1,000 Tomahawks, at least 1,900 AMRAAMs and more than 500 SM-6 missiles; those figures were not repeated in October. Raytheon’s third-quarter sales rose 14% to about $8 billion.

Sources: RTX’s Oct. 20, 2026 earnings call as reported by Defence Industry Europe (Oct. 22, 2026) and Baird Maritime; RTX press release of Feb. 4, 2026.