WASHINGTON — The U.S. Department of Defense has awarded a historic $22.9 billion multi-year contract to defense giant Raytheon, an RTX subsidiary, to dramatically accelerate the manufacturing of Tomahawk cruise missiles for the U.S. Navy.
The landmark seven-year agreement under the Pentagon’s Arsenal of Freedom initiative aims to ramp annual production of the long-range precision-guided weapon to over 1,000 units per year—a significant leap designed to address inventory strains and bolster naval deterrence.
ARSENAL OF FREEDOM INITIATIVE
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U.S. DEPARTMENT OF DEFENSE RAYTHEON (RTX)
• $22.9 Billion Multi-Year Procurement • 7-Year Production Ramp-Up
• Accelerated Defense Acquisition Strategy • Target: 1,000+ Tomahawks/Year
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U.S. NAVY FLEET STRIKE
• Precision Long-Range Firepower
• Multi-Platform Deployment (Ships & Submarines)
Scaling Capacity Amid Surging Global Demand
The contract arrives as defense officials push to replenish depleted munitions stocks and maintain strategic readiness following recent global conflicts and aid commitments to allies.
According to Raytheon, the company delivered three times more Tomahawks in the first half of 2026 compared to the same period in 2025. The multi-billion-dollar commitment gives defense contractors the long-term capital stability needed to expand manufacturing throughput, hire specialized labor, and fortify supply chains.
| Contract Metric | Details & Key Targets |
| Total Contract Value | $22.9 Billion USD |
| Duration | 7 Years |
| Target Production Output | 1,000+ Tomahawk cruise missiles annually |
| Key Partners | U.S. Navy, Raytheon (RTX), and hundreds of domestic sub-tier suppliers |
Strategic & Industrial Impact
Military leaders emphasized that the Tomahawk remains a cornerstone of U.S. naval power, capable of striking high-value targets hundreds of miles inland without exposing surface ships or submarines to counter-fire.
Under Secretary of Defense for Acquisition and Sustainment Michael P. Duffey noted that the award directly advances Washington’s broader acquisition overhaul, ensuring American forces retain decisive conventional firepower. To meet the unprecedented production schedule, Raytheon plans to partner with hundreds of small and mid-sized suppliers across the United States to expand domestic aerospace manufacturing capacity.
Pentagon Aerial view Image by Carol M. Highsmith’s on Rawpixel
