Defence Procurement: RTX's Raytheon Invests US$100m in US

Raytheon, a subsidiary of RTX Corporation, is committing US$100m to expand its Portsmouth, Rhode Island facility.

The investment targets production expansion for Lower Tier Air and Missile Defense Sensor (LTAMDS) radar technology and Patriot GEM-T missile subcomponents, addressing what the company identifies as accelerating global demand amid unprecedented defence spending increases across the US and Europe.

The expansion comes as procurement professionals navigate a complex landscape of depleted munitions stockpiles, often attributed to ongoing conflicts in Ukraine and military operations involving the US and Israel in the Middle East.

US President, Donald Trump, recently proposed an increase to the US defence budget to US$1.5tn for the year 2027, creating substantial implications for contract volumes and supplier capacity planning.

Production capacity and contract commitments

According to RTX, the Portsmouth expansion will accelerate LTAMDS testing by increasing facility capacity whilst boosting Patriot GEM-T subcomponent production.

The LTAMDS system represents advanced radar technology designed to defeat emerging threats, including hypersonic weapons, while Patriot GEM-T missiles are engineered to neutralise tactical ballistic missiles, cruise missiles and hostile aircraft.

Raytheon currently employs more than 850 people in Rhode Island, and the facility expansion could indicate future workforce scaling to meet production targets.

Tom Laliberty, President of Land & Air Defense Systems at Raytheon, says: "This investment strengthens our ability to deliver critical air and missile defence capabilities to customers around the world. Expanding in Portsmouth allows us to scale production, advance LTAMDS testing and ensure the US Army and our international partners receive these systems as quickly as possible."

The investment follows substantial contract awards that underscore the scale of procurement activity in this sector. In April, Raytheon signed a contract valued at US$3.7bn to supply Patriot GEM-T interceptors for Ukraine.

That same month, the Netherlands awarded RTX's Raytheon a US$627m contract for Patriot air and missile defence equipment. Raytheon is currently under contract for multiple LTAMDS radars for the US Army and Poland, representing a diversified customer base with varied delivery requirements.

Supply chain implications and demand forecasting

According to the Department of Defense's Fiscal Year (FY) 2027 Budget Program Acquisition Cost by Weapon System report, the US plans to increase spending on Patriot Advanced Capability from US$891.4m in FY 2025 to US$3.28bn in FY2027.

More significantly for procurement planning, PAC-3/Missile Segment Enhancement spending is projected to increase by over 15 times, from US$905.1m in FY 2025 to US$13.96bn in FY2027.

These projections indicate Patriot systems production will grow at an unprecedented rate.

NATO Deputy Secretary General, Radmila Shekerinska, said on 7 July 2025 at the NATO Summit Dialogues in Ankara: "In 2025 alone, European Allies and Canada increased defence investment by US$139bn. That's an increase of almost 20% compared to the previous year. And just one year into a 10-year project that is the Hague Defence Investment Plan."

She explained that NATO countries are responding to what it perceives as "reckless behaviour" from Russia and "volatility in the South". 

She said: "Our stockpiles need to be replenished. And we need this to happen fast. We need industry to rapidly produce capabilities and keep up with the increased demand for weapons and equipment. No single ally is able to produce all of what we need to address the pressing challenges we face. We need this effort to be transatlantic."

Co-production and capacity distribution

Reuters reported on 7 July that the US is planning a PAC-3 missile maintenance facility in Europe and that European states are in co-production talks with the US for AMRAAM missile production there. Lockheed Martin builds PAC-3 missiles for the Patriot air defence systems.

The news site theorised that if implemented, both projects could free up capacity at Raytheon and Lockheed Martin factories in the US and enable the defence giants to ramp up production at home.

The Centre for Strategic and International Studies noted in May 2025 that the 39-day bombing and air defence campaign against Iran had depleted inventories of key US munitions stockpiles.

President Trump has recently invoked the Defence Production Act of 1950 to shore up US production, which could mean priority allocations and government direction of industrial capacity may influence commercial contract fulfilment.

The Rhode Island investment represents RTX's broader capacity expansion strategy. In 2025, the company broke ground on a US$53m expansion of its Radar Production Facility in Andover, Massachusetts.

Collins Aerospace, also an RTX business, announced in May it is investing US$26.5m to expand its Largo, Florida facility to accelerate production of commercial aviation radars and multi-domain security solutions for defence customers.