Navy Accelerates Tomahawk Production with $22.9 B Raytheon Contract

On August 17, the U.S. Navy awarded Raytheon a seven-year contract worth $22.9 billion to accelerate production of the Tomahawk long-range cruise missile. The agreement is part of the Department of Defense’s “Arsenal of Freedom” initiative and is intended to expand the industrial base that supplies the Navy and its allies.

Raytheon wins USD 22.9 billion contract to deliver Tomahawk missiles to U.S. Navy

U.S. forces have been conducting airstrikes against Iran since February 28, depleting stocks of precision-guided weapons. Reports indicated that the Navy’s supply of Tomahawk missiles had fallen to roughly half of pre-conflict levels, prompting the Pentagon to seek rapid capacity expansion.

Newsweek

• February 4 – Raytheon and the Defense Department confirmed an agreement to raise Tomahawk production to 1,000 missiles annually.

U.S. Navy Awards Raytheon $22.9 Billion Deal To Boost Tomahawk Missile Production Raytheon wins USD 22.9 billion contract to deliver Tomahawk missiles to U.S. Navy NewsweekThe Hill

• February 28 – The Iran conflict began, leading to intensive use of Tomahawk missiles.

Newsweek

• August 17 – The Navy announced the $22.9 billion contract with Raytheon.

The Hill

• Current annual output: ~60 missiles (Raytheon).

U.S. Navy Awards Raytheon $22.9 Billion Deal To Boost Tomahawk Missile Production

• Contracted annual output: more than 1,000 missiles per year, a >16-fold increase.

Newsweek

• Total missiles to be produced under the contract: over 7,000 new-build, recertified, and modernized units (per Janes).

Janes Information Group

• Contract value represents roughly one-fifth of RTX’s existing defense backlog of $119 billion.

Raytheon Secures $22.9 Billion US Navy 'Tomahawk' Missile Contract, Bolstering Long-Term Orders and Defense Business

Republican Representative Don Bacon expressed concern that the president was unaware of the shortage of cruise missiles and Patriot systems, calling the lack of awareness “not a good … thing.” He added that lawmakers expect greater transparency after their recess later in August.

The Hill

• Production targets differ slightly: Raytheon cites “more than 1,000” missiles annually, while Janes notes a commitment to produce “over 7,000” missiles across the contract period.

U.S. Navy Awards Raytheon $22.9 Billion Deal To Boost Tomahawk Missile Production

• Stockpile depletion estimates vary: Newsweek, citing Reuters, reports that “just under half” of the Tomahawk stockpile had been used since February, whereas other sources reference “more than 1,000” missiles fired between February 28 and late April.

Newsweek

• “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,” — Phil Jasper, Raytheon president

The Hill

• “This Tomahawk award increases our ability to equip the Joint Force, ensuring our Warfighters never face a fair fight,” — Michael Duffey, under secretary for acquisition and sustainment

Raytheon Lands $23B Navy Tomahawk Missile Contract

• “I do have concerns that the president said he was not aware that we had a shortage of weapons like cruise missiles and Patriots. That’s not a good … thing,” — Rep. Don Bacon

The Hill

The contract includes funding for low-rate production in FY 2026 and additional budget requests through FY 2032. The Navy has indicated that transparency on munitions inventories will be provided to Congress after the August recess, and the expanded production capacity is expected to support both U.S. forces and allied customers in the coming years.

Janes Information Group