Overview
- The Navy and Raytheon formalized a $22.9 billion, seven-year production contract to expand Tomahawk cruise-missile output, a definitive award that follows framework agreements signed in February.
- The contract sets a goal of more than 1,000 Tomahawks per year and firms up funding intended to justify major capital spending and hiring by Raytheon and its supply base.
- Raytheon says it already delivered three times as many Tomahawks in the first half of 2026 as in the same period of 2025, and it plans to expand workforce, facilities and work with hundreds of smaller suppliers to meet higher rates.
- Independent analysts and watchdogs warn that component supply chains, hundreds of suppliers, skilled labor and long lead times are the binding constraints, so the award will not immediately restore missiles used in the Iran conflict.
- The contract is part of the Pentagon’s wider Arsenal of Freedom approach to use multi-year deals to grow domestic munitions capacity for other missile families and to stabilize supply for U.S. forces and allies.