RTX announced on February 4 2026 that it has entered into five multi‑year framework agreements with the U.S. Department of Defense to expand production of its most advanced missile systems, including the Tomahawk cruise missile, the Advanced Medium‑Range Air‑to‑Air Missile (AMRAAM), the Standard Missile‑3 Block IB and Block IIA, and the Standard Missile‑6 (SM‑6). The agreements are designed to increase annual production of Tomahawks to more than 1,000 units, AMRAAMs to at least 1,900, and SM‑6s to over 500 per year, while accelerating production of SM‑3 Block IIA and ramping up SM‑3 Block IB. The contracts are expected to lift production rates for these munitions by two to four times their current levels, providing a substantial boost to RTX’s defense revenue stream.
The current baseline production rates are approximately 300 Tomahawks, 800 AMRAAMs, 200 SM‑6s, 100 SM‑3 Block IIA, and 50 SM‑3 Block IB per year. Under the new framework, RTX will raise Tomahawk output to 1,000+, AMRAAM to 1,900+, SM‑6 to 500+, SM‑3 Block IIA to 400+, and SM‑3 Block IB to 200+. The agreements cover a seven‑year period and include a total value of roughly $12 billion, with the bulk of the value tied to the SM‑3 and SM‑6 programs.
RTX’s Q4 2025 earnings, released January 27 2026, showed sales of $88.6 billion and adjusted EPS of $6.29, up 10% year‑on‑year. The company projected 2026 sales of $92–$93 billion and adjusted EPS of $6.60–$6.80, reflecting confidence in the new contracts and ongoing investment in production capacity. The five framework agreements are a key driver of that outlook, as they secure long‑term demand and provide a predictable revenue base that supports RTX’s backlog growth and margin expansion strategy.
Management emphasized the strategic importance of the agreements. CEO Chris Calio said the contracts “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.” He added that RTX is “proud to support the department’s Arsenal of Freedom to ensure the United States and its allies have the decisive edge—now and in the future.” These comments underscore the company’s role in national security and its alignment with U.S. defense priorities.
The SM‑3 Block IIA entered full‑rate production on October 15 2024, and the new agreements will accelerate the ramp‑up of both Block IIA and Block IB. The Block IB, which had seen reduced production after 2023, will now see a 4‑fold increase in output, reflecting congressional support for its combat use against Iranian ballistic missiles. The agreements also include provisions for shared funding and risk‑sharing, allowing RTX to invest in new manufacturing lines while preserving upfront cash flow.
The broader defense industry is experiencing a surge in missile production contracts, with Lockheed Martin signing a similar framework to quadruple THAAD interceptor output. Geopolitical tensions—particularly the war in Ukraine and U.S.–China rivalry—have heightened demand for precision munitions, and recent combat use of SM‑3 missiles in 2024 has highlighted the operational need for these systems. The agreements therefore position RTX to capture a growing market while supporting U.S. and allied defense capabilities.
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