Raytheon, a subsidiary of RTX Corporation (RTX), has secured a seven-year, $22.9 billion contract to accelerate Tomahawk cruise missile production for the U.S. Navy and allied forces.
The contract was awarded on August 17, 2026, and establishes a long-term framework designed to significantly increase missile output while reinforcing Raytheon’s standing in the precision-strike market.
Under the terms of the agreement, Raytheon plans to raise annual Tomahawk production to more than 1,000 missiles alongside providing associated program support.
The company has already demonstrated meaningful production momentum, delivering three times more Tomahawks in the first half of 2026 than it did during the same period in 2025.
The new contract adds further visibility for continued production expansion, giving RTX a stronger footing as global demand for precision-strike capabilities continues to grow.
Beyond missile output, RTX is also working to strengthen the broader industrial base that supports the Tomahawk program, including investments in its workforce, technology, supply chain and manufacturing facilities.
Raytheon is currently working with hundreds of small and mid-sized suppliers across the United States, creating a production network capable of scaling alongside increasingly ambitious output targets.
The multi-year contract could make the Tomahawk program an increasingly important contributor to Raytheon’s long-term defense revenue as manufacturing capacity expands.
RTX is not alone in pushing to expand precision-strike production capacity, with Lockheed Martin Corporation (LMT) and Northrop Grumman Corporation (NOC) also strengthening their respective positions across advanced weapons and defense systems.
Lockheed Martin develops precision-strike weapons and missile systems for U.S. and allied defense programs, while Northrop Grumman focuses on missile technologies, propulsion systems and capabilities supporting advanced strike programs.
The Zacks Consensus Estimate for RTX’s 2026 and 2027 earnings per share points to year-over-year growth of 14.79% and 7.60%, respectively, reflecting broader confidence in the company’s defense pipeline.
RTX shares are currently trading at a premium relative to the industry, carrying a forward 12-month price-to-sales ratio of 2.97X compared with the industry average of 2.68X.
Over the past year, RTX shares have rallied 40.9%, significantly outpacing the industry’s comparatively modest 6.2% gain over the same period.
RTX currently holds a Zacks Rank of number 2, which corresponds to a Buy rating, suggesting analysts see continued upside potential for the defense contractor.
