Raytheon Wins $22.9 Billion Contract to Massively Increase Tomahawk Missile Production for U.S. Navy

RTX delivered three times more Tomahawks in the first half of 2026 than in the first half of 2025, signaling a rapid ramp in production pace under the new contract.
RTX raised its 2026 capital spending on facilities and factories to about $3.1 billion, up from $2.6 billion to support the expanded munitions output.
The February framework agreements also cover increased AMRAAM production to at least 1,900 per year, and include the SM-3 and SM-6 interceptor families.
DoD officials and DoN leadership frame the award as expanding the munitions industrial base and accelerating delivery, with Duffey calling to expand production and shorten procurement lead times, and Hung Cao emphasizing faster Tomahawk delivery to deter threats.
The U.S. Navy has awarded Raytheon a $22.9 billion, seven-year contract to dramatically boost Tomahawk cruise missile production, according to Reuters and Defence Blog. The deal is part of the Pentagon's Arsenal of Freedom program, which aims to scale annual Tomahawk output to more than 1,000 missiles — up from roughly 60 per year previously.
The scale of the ramp is already showing. RTX delivered three times more Tomahawks in the first half of 2026 than in the same period last year. To support that push, RTX raised its 2026 capital spending to about $3.1 billion, up from $2.6 billion, investing in facilities, factories, and hundreds of suppliers.
The contract was awarded under the Department of Defense's Arsenal of Freedom initiative, Defence Blog reported. The program is designed to rapidly expand U.S. munitions capacity. Navy leadership framed the award as a direct response to growing global threats. Undersecretary Hung Cao said the goal is faster Tomahawk delivery to deter those threats.
DoD officials say the move strengthens the broader munitions industrial base. Officials called for shorter procurement lead times and expanded production across the board. The contract is not just about one missile — it signals a wider shift in how the Pentagon plans to stock its arsenal.
The Tomahawk award builds on a set of framework agreements signed in February. Those deals also cover ramping AMRAAM air-to-air missile production to at least 1,900 per year. The SM-3 and SM-6 interceptor families are included as well, Reuters reported.
Together, the agreements represent a broad push to stabilize and grow U.S. munitions output across multiple weapon systems. RTX is the common thread — the company makes all of these missiles. The contracts give Raytheon a long-term, multi-year runway to invest and scale.
RTX is backing the production ramp with serious capital. The company increased its 2026 factory and facilities spending to $3.1 billion, up from a planned $2.6 billion. That money goes toward upgrading plants and expanding supplier capacity across hundreds of partner companies.
The output jump is already real. RTX tripled its Tomahawk deliveries in the first half of 2026 compared to the first half of 2025. Going from roughly 60 missiles a year to more than 1,000 is a roughly 16-fold increase — a transformation of the production line, not just a tweak, according to Naval Today.
Pentagon officials say faster missile production means faster delivery to joint forces. That matters for readiness — having weapons on hand when they are needed. Officials including Duffey called for shorter lead times, meaning less time between ordering a missile and getting it in hand.
Hung Cao said the contract will help the Navy deter threats more effectively. A Tomahawk is a long-range, precision strike missile that can hit targets hundreds of miles away. More of them, delivered faster, gives commanders more options — and sends a clear signal to adversaries, Defence Blog noted.
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