Raytheon, a division of RTX, announced Wednesday that it would ramp up production of several key missile systems, weeks after President Donald Trump threatened to nix the company’s government contracts unless it invested more in manufacturing.
The defense giant said it reached five agreements with the Pentagon to accelerate annual deliveries of these precision munitions — by as much as four times their current rates — including more than 1,000 Tomahawk cruise missiles, at least 1,900 Advanced Medium Range Air-to-Air Missiles and roughly 500 SM-6 missiles. Production of SM-3 IIA and SM-3 IB missile defense interceptors are also expected to rise.
“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,” RTX CEO Chris Calio said in a statement.
“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,” he added.
Manufacturing under the deal will take place at facilities in Huntsville, Alabama; Tucson, Arizona; and Andover, Massachusetts.
The announcement follows weeks of the president piling pressure on the defense industry for moving too slowly to produce military equipment. Trump, in a sweeping Jan. 7 executive order, prohibited stock buybacks and dividends at companies until “they are able to produce a superior product, on time and on budget.”
“I am committed to ensuring that the United States military possesses the most lethal warfighting capabilities in the world,” the order reads. “While the United States produces the best military equipment in the world, we do not make enough of it quickly enough to meet the needs of our military and our partners.”
The order also gave Secretary of Defense Pete Hegseth authority to review firms who are deemed “underperforming” and, where necessary, implement remediations to address shortfalls.
Trump at the time singled out Raytheon, calling it “the least responsive to the needs of the Department of War, the slowest in increasing their volume, and the most aggressive in spending on their Shareholders rather than the needs and demands of the United States Military.”
He warned that the Pentagon would cut business ties with the company unless it “steps up” on investment in plants and equipment.
RTX, during a post earnings call last week, said it plans to make a $500 million increase in investments in 2026, enhancing facilities that make munitions.
Tanya Noury is a reporter for Military Times and Defense News, with coverage focusing on the White House and Pentagon.
Read the full article here
