The U.S. Department of Defense and Raytheon have agreed five landmark, up-to-seven-year framework contracts to sharply increase production of a suite of precision-guided weapons that have been in heavy demand over the past three years. The agreements target Tomahawk cruise missiles (both land- and sea-attack variants), AMRAAM air-to-air missiles, the SM-6 surface-to-air/anti-ship weapon, and two interceptors in the SM-3 family (Block 1B and Block 2A). Raytheon says the deals will enable factory expansions and accelerated deliveries from plants in Tucson, Arizona; Huntsville, Alabama; and Andover, Massachusetts.
Under the new arrangements, annual output targets for several systems rise substantially: Tomahawks to more than 1,000 per year, AMRAAMs to at least 1,900, and SM-6s to more than 500. Production of SM-3 Block 2A will be increased and Block 1B accelerated; many of the items are slated to be manufactured at two-to-four times current rates. Raytheon has already invested heavily in capacity growth and plans further capital spending to meet what it calls sustained global demand for precision munitions.
The immediate drivers are clear: sustained, high-rate use of offensive missiles and interceptors in recent crises has drained inventories and prompted resupply requests from U.S. allies. The Navy War News summary released alongside the agreements points to heavy employment of Tomahawks and the family of Standard missiles over the last three years, and notes that allies pressed the United States for supplies — Japan bought 400 Tomahawks in 2024, for example.
Chinese military analyst Zhang Xuefeng told the Global Times that two strategic lessons have pushed Washington toward this expansion. First, conflicts from Ukraine to the Israel-Iran flare-up exposed how intense missile exchanges rapidly consume both strike munitions and defensive interceptors; in the 12-day Israel-Iran episode, Iranian launches reportedly exceeded 500 medium-range ballistic missiles and U.S.-supported THAAD systems expended roughly a quarter of their interceptor stocks. Second, the Pentagon is preparing for potentially higher-intensity missile volleys in the Indo-Pacific, where both offensive strikes and layered missile defenses would demand far greater sustained production.
Yet even with the announced increases, capacity constraints persist. Some of the high-end systems will only reach annual outputs in the low thousands after expansion, a level Zhang described as still fragile relative to the scale of attrition experienced in recent crises. That gap highlights a paradox of modern warfare: demand for advanced guided munitions can spike quickly, but scaling a complex industrial base — from seekers and guidance electronics to propellants and warheads — takes time, money and a secure supply chain.
For Washington, the program is as much about signaling as it is about numbers. The contracts reassure allies of continued access to U.S. capabilities and aim to reduce the risk that depletion of inventories will constrain policy choices. But the step-up also underlines a deeper strategic shift: the U.S. military is moving from episodic replenishment toward sustaining higher production rhythms as a base assumption of preparedness. That shift will press budgets, strain supplier networks and likely spur competitors to hedge in their own ways.