Can RTX's Tomahawk Production Ramp-Up Enhance Its Growth Prospects?

RTX Corporation RTX is significantly expanding its precision-strike manufacturing capabilities as its subsidiary Raytheon moves to accelerate Tomahawk cruise missile production. On Aug. 17, 2026, Raytheon was awarded a seven-year, $22.9 billion contract to support Tomahawk production for the U.S. Navy and allies. The award provides a long-term framework for increasing output while strengthening the company's position in the precision-strike market.

Under the agreement, Raytheon plans to raise annual Tomahawk production to more than 1,000 missiles and provide associated support. The company has already been increasing production, delivering three times more Tomahawks in the first half of 2026 than in the comparable period of 2025. The new contract provides additional visibility for continued production expansion.

RTX is also strengthening the industrial base supporting Tomahawk production. Raytheon plans to invest further in its workforce, technology, supply chain and facilities to amplify manufacturing capacity. The company is working with hundreds of small and mid-sized suppliers across the United States, allowing the production network to scale alongside higher missile requirements.

The multi-year award could provide RTX with greater production visibility while allowing Raytheon to expand manufacturing capacity around a major naval strike program. As the company boosts output and strengthens its supplier network, the Tomahawk program could become an increasingly important contributor to Raytheon's long-term defense growth.

Companies Expanding Precision-Strike Production

Rising demand for precision-strike capabilities is encouraging defense companies to expand missile production and related manufacturing capacity. Companies like Lockheed Martin Corporation LMT and Northrop Grumman Corporation NOC are also strengthening their positions across advanced weapons and defense systems.

Lockheed Martin develops precision-strike weapons and missile systems for U.S. and allied defense programs.

Northrop Grumman develops missile technologies, propulsion systems and other capabilities supporting advanced strike and defense programs.

Earnings Estimates for RTX

The Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 14.79% and 7.60%, respectively.

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RTX Stock Is Trading at a Premium

RTX is trading at a premium relative to the industry, with a forward 12-month price-to-sales of 2.97X compared with the industry average of 2.68X.

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RTX Stock Price Performance

Over the past year, RTX shares have rallied 40.9% compared with the industry’s 6.2% growth.

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RTX’s Zacks Rank

RTX currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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