Raytheon, an RTX (NYSE: RTX) business, has secured a $22.9 billion, seven-year contract from the U.S. Navy to sharply accelerate production of Tomahawk cruise missiles.
The Department of War announced the award on Monday, marking one of the most significant long-range strike munitions contracts in recent U.S. defense history.
The agreement was awarded through the Department of War’s Arsenal of Freedom initiative, which focuses on accelerating the production of strategically critical defense systems.
Under the contract terms, Raytheon will ramp Tomahawk production to more than 1,000 missiles annually, alongside associated support requirements for the Navy and its allies.
RTX has already demonstrated a significant production surge, delivering three times as many Tomahawk missiles in the first half of 2026 as it did during the same period of 2025.
Raytheon President Phil Jasper highlighted the scale of the company’s commitment to meeting growing demand for the weapon system.
“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,” Jasper said.
“We are making significant investments in our workforce, technology, supply chain and facilities to dramatically boost production capacity and meet surging demand,” he added.
Raytheon plans to collaborate with hundreds of small and medium-sized suppliers across the United States to support the higher production rate the contract requires.
The seven-year duration of the agreement gives RTX greater long-term visibility as it expands its workforce, increases manufacturing capacity, and builds a more resilient supply chain.
The contract is also intended to shorten procurement lead times in support of the Department’s broader Acquisition Transformation Strategy for speeding up delivery of critical weapons.
Tomahawk cruise missiles have been part of the U.S. military’s long-range strike arsenal for decades, offering commanders the ability to strike high-value targets from multiple launch platforms.
The weapon’s ability to engage targets hundreds of miles away without putting sailors or pilots at risk has kept it central to U.S. Navy strike planning across multiple generations of conflict.
The $22.9 billion award reinforces Tomahawk’s strategic importance and positions Raytheon to meet what the Pentagon describes as surging long-term demand for precision-strike capabilities.
