Raytheon, an RTX (NYSE:RTX) business, has secured a $22.9 billion, seven-year contract from the U.S. Navy aimed at sharply increasing production of Tomahawk cruise missiles, the Department of War announced on Monday.
The agreement is designed to support a production ramp to more than 1,000 Tomahawk missiles annually, alongside associated support requirements, as the U.S. seeks to expand supplies of critical long-range weapons.
Tomahawk production set for major expansion
The contract was awarded through the Department of War’s Arsenal of Freedom initiative, which is focused on accelerating the production and delivery of strategically important defence systems.
RTX has already increased output significantly. During the first half of 2026, the company delivered three times as many Tomahawk missiles as it did during the corresponding period of 2025.
Raytheon plans to expand manufacturing capacity further and work with hundreds of small and medium-sized suppliers across the United States to support the higher production rate.
“Tomahawk is the Navy’s most important strike weapon, able to target hostile forces hundreds of miles away without ever risking the lives of our sailors,” said Raytheon President Phil Jasper. “We are making significant investments in our workforce, technology, supply chain and facilities to dramatically boost production capacity and meet surging demand.”
Contract supports workforce and supply chain investment
The seven-year agreement gives RTX greater long-term visibility as it invests in additional employees, manufacturing capacity and a more resilient supply chain.
The contract is also intended to increase manufacturing throughput and shorten procurement lead times, supporting the Department’s broader Acquisition Transformation Strategy for speeding up delivery of critical weapons.
For RTX and its supplier network, the scale and duration of the award provide a foundation for sustained investment as demand for missile production increases.
Tomahawk remains key U.S. long-range strike weapon
Tomahawk cruise missiles have been part of the U.S. military’s long-range strike arsenal for decades and remain one of its most established precision-strike capabilities.
The weapon can be launched from multiple platforms and gives military commanders the ability to strike high-value targets at extended ranges.
The latest $22.9 billion contract reinforces Tomahawk’s strategic importance while positioning Raytheon to substantially increase annual production to meet growing U.S. defence requirements.
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