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Navy Awards Raytheon $22.9B Contract to Boost Tomahawk Production

8/19/2026

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Summary

Story summary

The U.S. Navy awarded Raytheon a seven-year, $22.9 billion contract to increase Tomahawk missile production.
Annual output will rise from about 60 missiles to over 1,000, a more than 16-fold increase.
Funding of $257 million for FY 2026 low-rate production and roughly $3 billion for FY 2027 supports delivery of more than 7,000 Tomahawks through 2032.
Acting Navy Secretary Hung Cao said the deal will speed delivery and keep warfighters equipped.

History

Historical Context

During the 1991 Gulf War the United States Navy fired Tomahawk cruise missiles from surface warships, a key element of the coalition’s air campaign that flew over 100,000 sorties. The success demonstrated how large-scale procurement could reshape strike power, prompting Raytheon, Lockheed Martin and the Department of Defense to pursue long-term contracts that will keep Tomahawk output expanding through the 2030s.

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Story summary

The U.S. Navy awarded Raytheon a seven-year, $22.9 billion contract to increase Tomahawk missile production.
Annual output will rise from about 60 missiles to over 1,000, a more than 16-fold increase.
Funding of $257 million for FY 2026 low-rate production and roughly $3 billion for FY 2027 supports delivery of more than 7,000 Tomahawks through 2032.
Acting Navy Secretary Hung Cao said the deal will speed delivery and keep warfighters equipped.

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