Annual output expected to reach 1,000 missiles
The US Navy has awarded RTX subsidiary Raytheon a $22.9 billion contract to increase production of Tomahawk cruise missiles to approximately 1,000 rounds per year.
The finalized agreement follows a framework deal reached with the US Department of Defense in February, laying the groundwork for the production expansion. RTX said the increase would take place over several years but did not provide a specific timeline for reaching the planned production rate.
Investments planned across workforce and industrial capacity
Raytheon plans to make significant investments in its workforce, production technologies, supply chain and manufacturing infrastructure.
“We are making significant investments in our workforce, technology, supply chain and facilities to dramatically boost production capacity and meet surging demand,” Raytheon President Phil Jasper said.
The company is seeking to expand manufacturing capacity and reduce supply-chain risks as the United States works to replenish munitions inventories and strengthen its defense industrial base.
Multiyear contracts designed to accelerate production
Over the past year, the US Department of Defense has used multiyear contracts for critical munitions to encourage major defense contractors to invest in factories, equipment and supplier networks.
Michael Duffey, the Pentagon’s top acquisition official, said the department had called on industry to increase munitions production and that RTX had responded to the request.
According to Duffey, the new Tomahawk contract will strengthen the US military’s ability to equip its forces and help preserve an operational advantage for American warfighters.
Tomahawk deliveries triple during first half of 2026
RTX said it has invested heavily in expanding production of Tomahawk missiles and other critical munitions.
During the first half of 2026, the company delivered three times more Tomahawks than during the same period a year earlier.
The Tomahawk is a long-range cruise missile designed to strike high-value land targets, including targets located far beyond the forward edge of the battlefield.
Production agreements cover additional missile systems
Raytheon has also signed framework agreements to increase production of other missile systems used by US forces.
The systems include:
- the AMRAAM air-to-air missile;
- the Standard Missile-6 surface-to-air missile;
- the Standard Missile-3 IIA interceptor;
- the Standard Missile-3 IB, for which production is also being accelerated.
RTX CEO Chris Calio said during an earnings call that the company had held “very, very productive and constructive conversations” with the Department of Defense about converting the framework agreements into definitive contracts.
The expansion of Tomahawk production and the output of other advanced munitions are part of broader US efforts to strengthen the defense industrial base and ensure sufficient inventories for large-scale military operations.
