The United States Navy has granted Raytheon a seven-year contract valued at $22.9 billion to boost the manufacturing of Tomahawk cruise missiles. This agreement is part of a broader Department of Defense initiative aimed at expanding domestic munitions production capabilities.
Under the new terms, annual output of the missiles is set to exceed 1,000 units for the Navy and its allied partners. To achieve this target, Raytheon will collaborate with hundreds of small and mid-sized suppliers. The company stated it has already begun preparations for this expansion by investing in its workforce, technology, facilities, and supply chain infrastructure.
Production figures indicate a significant recent increase in output. During the first half of 2026, Raytheon delivered three times the number of Tomahawk missiles compared to the same period in 2025. Earlier this year, the Defense Department and Raytheon, a subsidiary of RTX, reached separate agreements to increase the production of several other missile types.
In addition to new manufacturing, the Navy is proceeding with upgrades to its existing inventory. In January 2026, the service added $380.8 million to a prior Raytheon contract to handle missile recertification and modernization. The majority of this upgrade work is scheduled to be conducted at the company’s facility in Tucson, Arizona.