RTX's Raytheon partners with Department of War on five landmark agreements to expand critical munition production

Rhea-AI Summary

Raytheon (NYSE: RTX) signed five up-to-seven-year framework agreements with the U.S. Department of War to expand production and speed deliveries of Tomahawk, AMRAAM, SM-3 Block IB, SM-3 Block IIA, and SM-6 missiles.

Agreements target annual production of >1,000 Tomahawks, ≥1,900 AMRAAMs, and >500 SM-6, with 2–4x growth for many munitions and collaborative funding to preserve upfront free cash flow.

Positive

• Tomahawk production raised to more than 1,000 units annually
• AMRAAM production targeted at least 1,900 units annually
• SM-6 production increased to more than 500 units annually
• Framework term up to seven years enabling multi-year planning
• Many munitions planned to grow 2–4x current production rates
• Collaborative funding designed to preserve upfront free cash flow

Negative

• None.

News Market Reaction – RTX

-3.32%

-3.32% Session close to close

In the Feb 4 session, RTX declined 3.32%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement details multi-year frameworks to expand production of Tomahawk, AMRAAM, SM-3 and S...

Analysis

This announcement details multi-year frameworks to expand production of Tomahawk, AMRAAM, SM-3 and SM-6 munitions to historically high levels, reinforcing RTX’s role in critical defense supply. It builds on a pattern of partnership-driven growth that previously averaged about 1.85% price moves on similar news. The agreements are already contemplated in RTX’s 2026 outlook, while an effective but unused S-3ASR shelf provides financial flexibility for potential future initiatives.

Key Figures

Tomahawk annual production: more than 1,000 units AMRAAM annual production: at least 1,900 units SM-6 annual production: more than 500 units +5 more

8 metrics

Tomahawk annual production more than 1,000 units Target level under new framework agreements

AMRAAM annual production at least 1,900 units Target level under new framework agreements

SM-6 annual production more than 500 units Target level under new framework agreements

Framework duration up to seven years Length of munition production agreements

Tomahawk range 1,000 miles Maximum strike distance for Tomahawk cruise missile

Tomahawk tests over 550 flight tests Cumulative Tomahawk flight test count

Tomahawk operational uses more than 2,300 uses Operational employment of Tomahawk missiles

AMRAAM test record over 6,000 test shots, 13 victories AMRAAM test shots and air-to-air combat wins

Previous Partnership Reports

5 past events · Latest: Dec 04 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Dec 04	Cloud services partnership	Positive	+1.7%	Strategic collaboration with AWS to enhance satellite data and space services.
Nov 13	Engine consortium update	Positive	-2.1%	IAE partners reaffirm V2500 and GTF roadmap and next-gen propulsion work.
Apr 01	Defense tech partnership	Positive	+0.2%	Partnership with BrainChip for neuromorphic radar under AFRL contract.
Jul 25	Industrial base partnership	Positive	+8.2%	Avio contract to develop critical solid rocket motors for defense uses.
Jul 23	Rocket motor agreement	Positive	+1.2%	Raytheon–Avio deal to bolster U.S. solid rocket motor industrial base.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Partnership and collaboration headlines for RTX have generally coincided with modestly positive stock reactions, with an average move of 1.85% and only one negative response in the past five such events.

Recent Company History

Over the past two years, RTX has frequently used partnerships to deepen technology and industrial capabilities. Events include a cloud-focused collaboration with AWS for space customers on Dec 4, 2025, propulsion and GTF-consortium work via IAE on Nov 13, 2025, and multiple agreements with Avio in July 2024 to strengthen solid rocket motor production. These partnership announcements have often aligned with positive share reactions, framing today’s long-term munition production frameworks as part of an ongoing strategic collaboration trend.

Key Terms

amraam, standard missile-3, standard missile-6, exo-atmospheric, +2 more

6 terms

amraam technical

"Tomahawk, AMRAAMae missiles, Standard Missile-3ae Block IB..."

AMRAAM is a radar-guided air-to-air missile used by military aircraft to detect and engage enemy aircraft at medium to long ranges. For investors, it matters because production, sales, and export of such weapons drive revenue and profit for defense manufacturers and can signal government defense spending or geopolitical tensions, much like a company's flagship product that moves the bulk of its business and attracts long-term contracts.

standard missile-3 technical

"Standard Missile-3ae Block IB interceptors (SM-3 IB), Standard Missile-3ae Block IIA..."

A Standard Missile-3 (SM-3) is a ship- or land-launched interceptor designed to detect, chase and collide with short- to intermediate-range ballistic missiles while they are in flight, destroying them by impact rather than explosion. Think of it as a guided catcher attempting to knock a speeding missile out of the sky; investors watch SM-3 programs because they drive government defense spending, export sales, and supply-chain demand for contractors and advanced suppliers.

standard missile-6 technical

"Standard Missile-6ae (SM-6)."

Standard Missile-6 (SM-6) is a long-range guided naval missile fired from warships to intercept hostile aircraft, cruise missiles, and surface targets, and to engage certain incoming ballistic threats during their final approach. Think of it as a high-speed, radar-guided arrow that can home in on moving threats over the horizon; for investors, its significance lies in defense procurement and recurring aftermarket support, making it a bellwether for military spending and export demand.

exo-atmospheric technical

"A combat proven interceptor uniquely designed for exo-atmospheric intercept..."

Operating or occurring outside Earth’s atmosphere — beyond the thin layer of air that surrounds the planet. For investors, “exo-atmospheric” signals activities with different technical challenges, regulatory rules, costs and risks than ordinary terrestrial projects (for example, satellite operations, launch services or missile-defense intercepts), meaning higher capital needs, longer timelines and specialized suppliers that can materially affect a company’s finances and prospects.

ballistic missiles technical

"exo-atmospheric intercept of short- to intermediate-range ballistic missiles..."

A ballistic missile is a rocket‑powered weapon that is launched into a high arc and then follows a largely unpowered, predictable path to a distant target, like throwing a stone so hard it travels into the sky and falls many miles away. Investors watch them because their use or threat can quickly reshape markets—prompting higher defense spending, disrupting trade and supply chains, raising insurance and commodity prices, and increasing overall market volatility as governments and businesses respond.

air-to-air missile technical

"The world's most widely deployed, air-to-air missile."

An air-to-air missile is a weapon fired from one aircraft to find, chase and disable or destroy another aircraft in flight using guided sensors and steering systems. Investors care because development, production and export of these missiles drive revenue and profits for defense contractors, influence military budgets and procurement decisions, and can change geopolitical risk — similar to how upgrading a security system changes insurance and safety costs.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Up-to-seven-year deals to increase annual production of Tomahawk, AMRAAM, SM-3 Block IB, SM-3 Block IIA, SM-6

TUCSON, Ariz., Feb. 4, 2026 /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, entered into five landmark framework agreements with the U.S. Department of War to significantly increase production capacity and speed deliveries of Land Attack and Maritime Strike variants of Tomahawk, AMRAAM® missiles, Standard Missile-3® Block IB interceptors (SM-3 IB), Standard Missile-3® Block IIA interceptors (SM-3 IIA), and Standard Missile-6® (SM-6).

As global demand for these precision munitions continues to grow, these up-to-seven-year agreements establish frameworks to build on the company's previous investments to expand production. Under the frameworks announced today, RTX will increase annual production of Tomahawks to more than 1,000, AMRAAMs to at least 1,900, and SM-6 to more than 500. RTX will also increase production of SM-3 IIA and accelerate production of the SM-3 IB. Many of these munitions will grow 2 to 4 times their existing production rates.

With the Department of War's strong commitment to strengthening the defense industrial base and creating American jobs, RTX will continue to make investments in technology, facilities and our workforce to reach and sustain this historically high production rate.

"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 and Chairman 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."

RTX has invested heavily in capacity expansion to accelerate production of several critical munitions and will continue investing in capacity expansion and production acceleration projects. Production under these framework agreements will be completed at Raytheon facilities in Tucson, Ariz., Huntsville, Ala., and Andover, Mass.

The company investments associated with these framework agreements have been contemplated in RTX's recently announced financial outlook for 2026. The long-term agreements incorporate a collaborative funding approach designed to preserve upfront free cash flow, allowing RTX to invest confidently to meet long-term demand. 

CRITICAL MUNITIONS FOR U.S. AND ITS ALLIES AND PARTNERS

Tomahawk cruise missile 

• A precision weapon launched from ships and submarines and can strike targets precisely from 1,000 miles away, even in heavily defended airspace. U.S. and allied militaries have flight tested the Tomahawk over 550 times and used it in an operational environment more than 2,300 times. It is routinely the first option employed by U.S. forces to target hostile forces anywhere in the world.

AMRAAM

• The world's most widely deployed, air-to-air missile. Since 2024, Raytheon has been producing the fifth-generation AMRAAM, featuring advanced guidance, software-defined capabilities and enhanced electronic protection for highly contested combat environments. In service with more than 40 allies and partners, AMRAAM is integrated across fourth and fifth generation aircraft and serves as the primary interceptor for NASAMS, supporting both air-to-air and ground-based air defense. Production nearly doubled in 2025 from 2024 and performance has been proven through more than 6,000 test shots and 13 air-to-air combat victories.

SM-3 IB

• A combat proven interceptor uniquely designed for exo-atmospheric intercept of short- to intermediate-range ballistic missiles with hypersonic hit-to-kill accuracy. It can be launched from both ships and land-based sites. In April of 2024, SM-3 IB was first used in combat to intercept Iranian ballistic missiles headed toward Israeli targets.

SM-3 IIA

• An interceptor created in a cooperative development program between the U.S. Missile Defense Agency, the Japan Ministry of Defense and their industry partners. The interceptor features larger rocket motors and an enhanced kinetic warhead compared to its predecessors, allowing it to engage threats faster and protect larger regions from short- to intermediate-range ballistic missile threats.

SM-6 missile

• Standard Missile-6 is the only missile that supports anti-air warfare, anti-surface warfare and sea-based terminal ballistic missile defense in one solution, and it's enabling the U.S. and its allies and partners to cost-effectively increase their projected force. SM-6 has been successfully fired from various U.S. Navy ships and launchers on land.

About Raytheon
Raytheon, an RTX business, is a leading provider of defense solutions to help the U.S. government, our allies and partners defend their national sovereignty and ensure their security. For more than 100 years, Raytheon has developed new technologies and enhanced existing capabilities in integrated air and missile defense, smart weapons, missiles, advanced sensors and radars, interceptors, space-based systems, hypersonics and missile defense across land, air, sea and space.

About RTX
With more than 180,000 global employees, we push the limits of technology and science to redefine how we connect and protect our world. With industry-leading capabilities, we advance aviation, engineer integrated defense systems for operational success, and develop next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2025 sales of more than $88 billion, is headquartered in Arlington, Virginia.

Contact: corporatepr@rtx.com

View original content:https://www.prnewswire.com/news-releases/rtxs-raytheon-partners-with-department-of-war-on-five-landmark-agreements-to-expand-critical-munition-production-302678335.html

SOURCE RTX

FAQ

What did RTX announce on February 4, 2026 regarding missile production?

RTX announced five up-to-seven-year framework agreements to expand production of multiple missiles. According to the company, targets include >1,000 Tomahawks, ≥1,900 AMRAAMs and >500 SM-6 annually, with many munitions increasing 2–4x current rates.

How will the RTX (NYSE: RTX) agreements affect Tomahawk and AMRAAM output numbers?

The agreements will raise Tomahawk output to over 1,000 and AMRAAMs to at least 1,900 annually. According to the company, these increases reflect capacity expansions, facility investments, and accelerated production timelines.

Where will RTX manufacture the increased missile production under the 2026 agreements?

Production will occur at RTX facilities in Tucson, Arizona; Huntsville, Alabama; and Andover, Massachusetts. According to the company, these sites will host capacity and technology investments to meet higher production rates.

What financial approach did RTX say it will use for these long-term missile frameworks?

RTX said the frameworks use a collaborative funding approach to preserve upfront free cash flow. According to the company, this structure allows continued investment in capacity while managing near-term cash outflows for 2026 outlook alignment.

How long are the RTX framework agreements with the U.S. Department of War and what munitions are covered?

The agreements run up to seven years and cover Tomahawk, AMRAAM, SM-3 Block IB, SM-3 Block IIA, and SM-6 missiles. According to the company, the frameworks aim to accelerate deliveries and expand production capacity.