Tomahawk, AMRAAM missiles could see fourfold production surge by 2030 under RTX plan

RTX has entered into four multiyear Pentagon contracts worth approximately $70 billion to increase production capacity for its Tomahawk, AMRAAM, SM-6, and SM-3 IB missiles.

By 2030, the aerospace and defense company is expected to ramp up production across all four critical munitions programs, with output acceleration gathering pace over the next two years.​ During an October 20 investor briefing, RTX Chief Executive Chris Calio confirmed aiming to raise production rates to between two and four times current levels.

During the third quarter, the Raytheon division booked approximately $23 billion for the Tomahawk program and over $14 billion for AMRAAMs. The SM-6 and SM-3 IB contracts will be officially recorded in the fourth quarter.

Supply chain optimization and production scaling

To meet production targets, Raytheon is buying specialized tooling and test equipment while adjusting testing protocols, replacing obsolete components, and qualifying additional suppliers alongside the Pentagon. Year-to-date output across its critical munitions portfolio has increased above 90 percent year-over-year, supported by a double-digit increase in material receipts. Solid rocket motors constitute the biggest supply-chain constraint, according to Calio.

To distribute the workload across a broader supplier base, RTX is expanding partnerships with external motor makers. Additionally, the company is developing a hybrid weapon for which the rocket motor and steering controls are taken from one existing program and the seeker from another to serve specific mission requirements faster and at a lower cost.

The company also deploys field sensors utilizing artificial intelligence to identify objects and classify incoming threats.

International demand and financial outlook

Global geopolitical tensions continue to drive international demand for Raytheon’s products. The company booked orders worth $9 billion in the third quarter.

Raytheon’s overseas bookings for the first nine months of the year reached 2.5 times the year-earlier level. International business forms around 37 percent of Raytheon’s $130 billion backlog and rises to 52 percent if the new Tomahawk and AMRAAM contracts are excluded, as noted by Chief Financial Officer Neil Mitchill.

Higher volumes from naval, land, and air defenses lifted sales for Raytheon by 14 percent to $8 billion in the third quarter. Total bookings reached $52.3 billion for the quarter, including $1.8 billion for SPY-6 radar production.

Strategic push for munitions stockpiles

Driven by high military modernization spending in Germany, Poland, and Japan, Raytheon expects rising defense budgets across Europe, the Middle East, and Asia-Pacific through 2027.

To serve rising international demand, RTX already relies on over 130 suppliers in Europe for the production of systems such as Patriot and GEM-T interceptors.​Historically, the Pentagon procured munitions on an annual basis, leading to uncertainties for defense contractors and sub-tier suppliers.

The shift to multiyear procurement contracts with structural protections against fluctuations in budgets or order volumes provides greater stability for companies like RTX. This ensures the financial predictability required for companies to make large capital investments.

Furthermore, these massive procurement contracts reflect the U.S. Department of Defense’s priority to restock depleted inventories and expand integrated air and missile defense capabilities, replenishing weapons transferred abroad while building reserves for the Indo-Pacific region as industrial bases across the U.S. and Europe strain to accelerate output.

Source: https://interestingengineering.com/military/rtx-quadruple-us-missile-production