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2d ago

U.S. Navy Awards Raytheon $22.9 Billion Contract to Ramp Tomahawk Production

The seven‑year deal gives industry stability to expand factories, suppliers, and workforce to rebuild stocks drained by recent operations.

Acting US Navy Secretary Hung Cao said the contract will 'accelerate Tomahawk missile delivery' to US warfighters
Image
The Arleigh Burke class guided missile destroyer USS Mustin (DDG 89) fires a Tomahawk Land Attack Missile simulating a joint strike on an enemy shore facility during Valiant Shield 2014. (Image credit: U.S. Navy photo by Mass Communication Specialist 2nd Class Declan Barnes)

Overview

  • The Navy awarded the $22.9 billion, seven‑year contract to Raytheon on Monday to increase annual Tomahawk output to more than 1,000 missiles from roughly 60 today.
  • Raytheon and RTX say they already tripled Tomahawk deliveries in the first half of 2026 and will invest in factories in Tucson, Huntsville and Andover plus hundreds of small and mid‑size suppliers.
  • Officials framed the award as part of the Department of War’s Arsenal of Freedom and Acquisition Transformation approach to give firms long‑term certainty to make large capital and workforce investments.
  • Analysts and watchdogs caution the ramp will take years because many components have 18 to 47‑month lead times and skilled labor and supplier capacity are the binding constraints on faster deliveries.
  • A separate Navy contract modification of about $476.5 million for modernization, depot work, and spare parts is reported as developing, and Congress must fund higher procurement to replenish inventories fully.