A Canadian automotive supplier is stepping into an unexpected corner of the defence industry, bringing its manufacturing expertise to one of America’s most important missile programs.
Toronto-based Martinrea International announced on November 11, 2026, that its U.S. subsidiaries have established a partnership with Raytheon, an RTX business, to help accelerate production of Tomahawk cruise missiles.
The arrangement represents a significant expansion beyond Martinrea’s traditional automotive operations. Rather than manufacturing missiles directly, the company will initially focus on improving production efficiency, reducing delays, and strengthening factory operations.
With Washington investing billions of dollars to expand missile production, the collaboration highlights how automotive manufacturing expertise could become increasingly valuable to the defence sector. It also opens a potential new business opportunity for a Canadian company navigating an evolving North American industrial landscape.
A Canadian Auto Supplier Moves Into U.S. Defence Manufacturing
For a company traditionally associated with vehicle components, supporting the production of cruise missiles represents a notable strategic development. Martinrea’s November 11 announcement confirmed that its American subsidiaries are working alongside Raytheon’s manufacturing teams to improve the efficiency of Tomahawk production. The collaboration focuses on factory operations, workflow, production-line design, and reducing the time needed to complete manufacturing processes. Martinrea is contributing industrial expertise rather than announcing that it has started assembling missiles or producing their components.
The distinction is important because operational consulting and direct weapons manufacturing represent very different commitments. Martinrea CEO Pat D’Eramo emphasized the company’s experience operating complex manufacturing facilities, describing the collaboration as an opportunity to apply those capabilities to defence production. For Raytheon, the immediate objective is improving manufacturing readiness and increasing output. For Martinrea, the arrangement offers an opportunity to demonstrate that knowledge developed in automotive manufacturing can also deliver results in a demanding military environment, potentially creating opportunities beyond its traditional customer base.
Two U.S. Subsidiaries Are Leading the Partnership
Martinrea’s involvement is being managed through two wholly owned American subsidiaries, TruNorth Aerospace & Defense USA and TruNorth Kaizen. The first was described as a newly formed business focused on aerospace and defence opportunities, while TruNorth Kaizen was established to provide lean-manufacturing expertise to external customers. Their participation allows Martinrea to enter the American defence supply chain through U.S.-based operations while drawing on the experience accumulated throughout its international automotive business. The November announcement did not identify a specific facility where all the consulting work would take place.
Importantly, the relationship already had a financial foundation. In its August 2026 second-quarter financial results, Martinrea disclosed that TruNorth Kaizen had secured a C$5-million contract with Raytheon to improve production throughput for defence and aerospace products. That disclosure provides valuable context for the November announcement, which did not specify the value of any additional or expanded work. The partnership is therefore not simply an unexplored opportunity. Martinrea had already established a commercial relationship with Raytheon before publicly detailing its involvement in the Tomahawk production effort.
Lean Manufacturing Expertise Is at the Centre of the Deal
The collaboration revolves around a concept widely used in the automotive industry: lean manufacturing. Rather than relying exclusively on new factories, additional equipment, or longer working hours, lean production aims to make existing operations more efficient. This involves identifying unnecessary movement, reducing waiting periods, improving inventory management, and arranging production activities so work progresses smoothly. The U.S. National Institute of Standards and Technology identifies reduced lead times, greater productivity, and improved quality control among the potential benefits of these methods.
For Raytheon, such improvements could help address the operational challenges associated with expanding a complicated manufacturing program. A production line can lose valuable time when components arrive late, workstations become congested, or tasks are poorly coordinated. Martinrea plans to examine manufacturing flow, line layouts, daily operating practices, and workforce development. Its specialists will work with Raytheon’s teams to identify possible improvements and transfer manufacturing knowledge. While the companies have not published detailed performance measurements, the underlying approach demonstrates why experience gained producing automotive components can be relevant to industries with very different finished products.
The Relationship Started Months Before November’s Announcement
Although the partnership became headline news in November, Martinrea confirmed that TruNorth had begun working with Raytheon during the summer of 2026. The initial engagement involved introducing lean-manufacturing methods within Raytheon’s operations. According to Martinrea, the early results encouraged both companies to expand the relationship, with greater emphasis on integrating efficient production practices throughout the manufacturing organization. The companies have not released independent measurements of those early improvements, meaning the reported progress reflects their own assessment rather than publicly documented production statistics.
The groundwork extends even further back. During its April 2026 first-quarter earnings announcement, Martinrea introduced TruNorth Kaizen as a consulting business built around its internal manufacturing expertise. Management also reported securing work with aerospace-related businesses, including a significant engagement with a large U.S. defence company. In August, Martinrea explicitly named Raytheon when discussing its C$5-million consulting contract. The November announcement therefore provides a clearer account of an effort that had been developing for several months. It also suggests Martinrea is pursuing the defence market through established customer relationships rather than immediately committing to large-scale military manufacturing investments.
Tomahawk Missiles Are a Major Part of America’s Military Arsenal
The Tomahawk cruise missile has been part of American military operations for decades, making it one of the most established weapons in the U.S. Navy’s inventory. First used in combat during Operation Desert Storm in 1991, the missile can be launched from surface ships and submarines to strike distant targets. According to the U.S. Navy, modern Tomahawk variants have an approximate range of 1,600 kilometres. The newer Block V configuration includes upgraded navigation and communications capabilities, while additional variants are intended to expand the weapon’s operational flexibility.
Manufacturing such a system involves considerably different requirements from producing components for passenger vehicles. Parts must arrive in the correct sequence, assemblies require careful inspection, and finished equipment must satisfy demanding quality standards. Those challenges create opportunities for manufacturing specialists who understand how to coordinate complex operations. Martinrea’s contribution is expected to centre on these production processes rather than missile design or engineering development. The collaboration demonstrates how industrial knowledge acquired in civilian manufacturing can become valuable in military production, even when the products themselves have little in common.
Raytheon Is Preparing to Produce More Than 1,000 Tomahawks Annually
The scale of Raytheon’s manufacturing expansion helps explain why the company is seeking outside operational expertise. In February 2026, Raytheon announced framework agreements with the U.S. Department of Defense to increase production of several major missile systems, including Tomahawk, AMRAAM, SM-3, and SM-6. In August, the U.S. Navy awarded Raytheon a seven-year contract valued at US$22.9 billion to accelerate Tomahawk manufacturing. The agreement supports an eventual annual production rate exceeding 1,000 missiles, a substantial increase from the roughly 60 missiles per year reported by Reuters at the time.
Raytheon had already begun expanding output before the major contract was announced. RTX reported delivering three times as many Tomahawks during the first half of 2026 as it delivered during the corresponding period in 2025. The company is also investing in production facilities, workforce development, and supplier relationships to support further growth. For Martinrea, this creates an opportunity to contribute manufacturing expertise during a period of significant expansion. However, the US$22.9-billion contract belongs to Raytheon, and the annual production target represents a future objective rather than an output level already achieved.
Martinrea’s Global Automotive Operations Provide Valuable Experience
Martinrea is far from a small manufacturer experimenting with an unfamiliar industry. According to its November announcement, the company operates 53 locations across Canada, the United States, Mexico, Germany, Slovakia, Spain, South Africa, and Japan. Its core operations focus on lightweight vehicle structures and propulsion systems, requiring advanced engineering, careful production planning, and consistent quality control. The company’s scale is reflected in its financial performance. During the second quarter of 2026, Martinrea reported approximately C$1.20 billion in revenue and C$147.2 million in adjusted earnings before interest, taxes, depreciation, and amortization.
Yet the automotive industry remains sensitive to production volumes, changing vehicle programs, and shifting customer demand. Martinrea’s second-quarter revenue declined 5.9% compared with the same period in 2025, even as management highlighted improvements over the preceding quarter. The company has identified expanding non-automotive businesses as one of its medium-term priorities, with opportunities emerging in defence, power generation, and transportation. Its Raytheon relationship fits that strategy. By finding customers for its manufacturing expertise outside traditional vehicle production, Martinrea could gradually develop additional revenue streams without abandoning its established automotive operations.
Canada’s Automotive and Defence Industries Are Finding New Connections
Martinrea’s announcement comes as other Canadian manufacturers explore opportunities linking automotive production with defence. On November 9, 2026, Stellantis and Canadian armoured-vehicle manufacturer Roshel announced an agreement for Roshel to acquire the idled Brampton Assembly Plant in Ontario. The proposed transaction, which remained subject to closing conditions, would give Roshel access to existing automotive manufacturing infrastructure. The companies also agreed to explore future cooperation involving defence-related vehicle technologies. Although separate from Martinrea’s partnership, the development illustrates growing interest in adapting automotive industrial capabilities for military applications.
Canada’s federal government is also seeking to strengthen its domestic defence industry. The Defence Industrial Strategy introduced in February 2026 emphasizes Canadian manufacturing, stronger supply chains, advanced technologies, and expanded international business opportunities. These priorities create a broader environment in which manufacturers can explore defence-related work. However, the location of production remains an important distinction. Martinrea’s current collaboration involves U.S. subsidiaries supporting an American missile manufacturer, and it does not establish that additional manufacturing jobs will be created in Canada. Any domestic employment benefits would depend on future investment decisions, supplier contracts, and the location of actual production activities.
Martinrea Sees Opportunities to Become a Direct Defence Supplier
Martinrea’s ambitions extend beyond helping Raytheon improve existing manufacturing operations. Executive chairman Rob Wildeboer indicated that the newly established TruNorth Aerospace & Defense USA subsidiary could eventually create opportunities for Martinrea to become a direct manufacturing supplier to leading aerospace and defence companies. Such a transition would significantly expand the company’s involvement in the industry. Instead of primarily providing operational advice, Martinrea could potentially manufacture components or assemblies used in aerospace and military programs. That longer-term possibility is an important part of the company’s strategic interest in the relationship.
However, becoming a direct supplier would require additional commercial agreements and the ability to satisfy the technical, quality, and regulatory requirements of individual defence programs. Martinrea’s automotive manufacturing background provides relevant experience, but it does not automatically guarantee new manufacturing contracts. The company has not announced an agreement to produce Tomahawk missile components. Its immediate opportunity is to demonstrate that its methods can improve manufacturing performance within Raytheon’s operations. Successful execution could strengthen customer relationships and establish credibility in the defence industry, but further manufacturing awards would remain separate business decisions rather than guaranteed outcomes of the current partnership.
The Partnership Offers Potential Growth, but Important Questions Remain
Although the agreement represents a meaningful development for Martinrea, several details about its future financial impact remain uncertain. The company previously disclosed a C$5-million Raytheon consulting contract in August 2026, but its November announcement did not specify whether the broader engagement included additional contract value. It also did not disclose a new contract duration, the number of employees assigned to the expanded work, or measurable targets for reducing Tomahawk production lead times. These details matter when evaluating how significant the arrangement could become for Martinrea’s overall business.
Martinrea scheduled its third-quarter financial results for November 12, 2026, with a conference call later that day, potentially providing management with an opportunity to discuss its diversification efforts. Over the longer term, the clearest evidence of success would include measurable manufacturing improvements, additional defence contracts, and confirmed opportunities to produce components directly. The partnership nevertheless represents an important strategic step. A Canadian company built around automotive manufacturing has secured a role in one of America’s largest missile-production expansion programs. Its future in the defence industry may depend on how effectively it converts that initial operational relationship into sustainable manufacturing business.
