Home Air Pentagon’s 2027 missile drive signals US strategy reset

Precision under pressure: 55th and 79th FGS weapons technicians compete at the 20th Fighter Wing Annual Load Crew Competition — U.S. Air Force Senior Airman Cody Ratchford, 79th Fighter Generation Squadron weapons technician, affixes fins to an AIM-120 advanced medium-range air-to-air missile (AMRAAM) during the 20th Fighter Wing Annual Load Crew Competition at Shaw Air Force Base, S.C., Jan. 17, 2025. Missile fins provide stability and control by generating aerodynamic forces that adjust the missile's attitude and direction, similar to arrow fletching, keeping it on course. (U.S. Air Force photo by Senior Airman Meghan Hutton)

Pentagon’s 2027 missile drive signals US strategy reset

October 9, 2025

The Pentagon’s accelerated plan to boost missile and munitions production marks a “foundational reset” in United States defence strategy, according to analysis by Bloomberg Intelligence.

The research suggests that missile procurement funding could rise by 30 percent or more if the Department of Defense moves ahead with plans to more than double production across 12 critical munitions programs.

The Pentagon has reportedly tasked industry with achieving a 2.5-fold increase in output over the next two years to prepare for a potential high-intensity conflict with China by 2027.

Bloomberg Intelligence stated that the shift reflects “a foundational reset in US munitions strategy”, with Lockheed Martin, RTX (formerly Raytheon Technologies), and Northrop Grumman positioned to benefit from what analysts describe as a “multiyear growth runway and a possible valuation rerating.”

According to the analysis, the Pentagon’s Section 890 “TINA Lite” pilot programme will enable streamlined contracting for munitions deals over $50 million, reducing cost and pricing data requirements. The policy change, signed in July by Peter Guinto, Director of Price, Cost and Finance at the Office of the Under Secretary of Defense, is intended to accelerate procurement cycles and expand industrial capacity.

The report noted that the US may currently lack sufficient stockpiles of critical munitions to sustain a major conflict, citing gaps in missile production and supply chain resilience. It also identified Lockheed’s PAC-3 interceptors, JASSM, LRASM and PrSM, and RTX’s SM-6 and Tomahawk missiles as priority systems under the Pentagon’s new Munitions Acceleration Council, led by Deputy Secretary of Defense Steve Feinberg.

Bloomberg Intelligence calculated that incremental costs for the expansion could reach up to $9 billion, on top of the $28.3 billion requested for fiscal 2026 missile and munitions procurement.

Lockheed Martin’s missile and fire control business was highlighted as a major beneficiary, with projected production increases of up to 50 percent by 2027. RTX is also expected to gain from expanded SM-6 and Tomahawk output, while Northrop Grumman’s Advanced Anti-Radiation Guided Missile (AARGM) and Stand-in Attack Weapon (SiAW) were identified as growth drivers amid international demand.

Emerging entrants such as Anduril and the Prometheus Energetics joint venture between Kratos and Rafael are expected to play roles in alleviating solid rocket motor bottlenecks that have constrained production. Bloomberg Intelligence described the overall Pentagon initiative as a broad effort to rebuild munitions stockpiles and prepare US industry for sustained near-peer competition.