RTX Secures $70 Billion Pentagon Deal to Quadruple Key Missile Production

ANKARA, Oct 24 (OPA) — RTX is scaling up production of Tomahawk, AMRAAM, SM-6, and SM-3 Block IB missiles by two to four times current levels. The company confirmed the expansion during its third-quarter earnings call on Oct. 20, 2026, noting that the $70 billion in multi-year contracts provides a decade of demand visibility. The effort represents one of the largest capacity expansions in the U.S. defense industrial base, involving significant investments in new manufacturing tools, test equipment, and supply chain integration.

CEO Chris Calio reported that the Tomahawk program secured approximately $23 billion in orders, while the AMRAAM program accounted for over $14 billion. Under these agreements, annual production targets are set to reach 1,000 units for the Tomahawk and 1,900 for the AMRAAM. SM-6 and SM-3 Block IB contracts, finalized in October, are expected to be reflected in order backlogs by the fourth quarter of 2026. These systems are essential for long-range precision strikes, air combat, and ballistic missile defense.

To meet these aggressive targets, RTX is restructuring its supply chain and investing heavily in infrastructure. CFO Neil Mitchill stated that capacity growth will accelerate over the next two years and continue through 2030. The company added 150 new suppliers in 2025 and is working with the Pentagon to streamline testing, improve design efficiency, and secure critical mineral supplies. Raytheon reported that its overall production of critical munitions has already increased by more than 90 percent throughout 2026.

The expansion reflects a broader U.S. strategy to prioritize high-intensity conflict readiness and long-term munitions availability. While the $70 billion figure covers the total value of various long-term contracts rather than immediate expenditures, it underscores a shift toward multi-year procurement stability. Success remains contingent on sustained budget allocations, the performance of the expanded supply chain, and the ability to scale specialized labor and testing facilities to meet the 2030 deadline.