US Navy awards Raytheon $22.9 billion seven-year Tomahawk contract
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The U.S. Navy on Monday awarded RTX unit Raytheon a $22.9 billion, seven-year contract to expand Tomahawk missile production to more than 1,000 missiles per year. The deal aims to replenish depleted weapons stocks after arms transfers to allies and use in the Iran conflict. It firms up a framework agreement signed in February, as the Trump administration pursues similar multi-year defense contracts.
Key Facts
- The U.S. Navy awarded Raytheon, an RTX unit, a $22.9 billion, seven-year contract on Aug. 17, 2026, to expand Tomahawk missile production.
- Raytheon said the contract will raise annual Tomahawk production from 60 missiles currently to more than 1,000.
- The sea-launched Tomahawk provides the Navy's surface fleet with long-range precision strike capability against land targets from ships and submarines.
- The contract firms up a framework agreement that the U.S. military and Raytheon signed in February.
- Earlier this month the U.S. military signed separate deals to ramp up production of Patriot and THAAD interceptor missile parts.
Contract Scope
The seven-year contract aims to increase annual Tomahawk production to more than 1,000 missiles, up from the current 60, according to Raytheon. Acting Secretary of the Navy Hung Cao said in a post on X that the military called on industry to rapidly scale up munitions output and that RTX is delivering. The administration of President Donald Trump is brokering multi-year deals with the biggest U.S. defense contractors to give them confidence to invest billions of dollars in new facilities and equipment. The Tomahawk, a mainstay of the Navy's surface fleet, provides long-range precision strike capability against land targets from ships and submarines. The agreement firms up a framework deal signed in February, according to the U.S. military.
Strategic Rationale
The U.S. has supplied large amounts of arms to allies while also using munitions in the Iran conflict, raising concerns about inventories of air defense and precision-guided weapons. Expanding Tomahawk production strengthens the Navy's ability to sustain distributed long-range firepower in demanding theaters such as the Indo-Pacific, where arsenal depth and the ability to replace expended missiles could prove decisive in a prolonged conflict. Earlier this month the military signed separate deals to ramp up production of Patriot and THAAD interceptor missile parts. Acting Secretary of the Navy Hung Cao called the Tomahawk contract 'landmark' and said it ensures warfighters continue to have the lethal firepower they need.
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US Navy awards Raytheon $22.9 billion seven-year Tomahawk contract
