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Raytheon has secured a landmark seven-year, US$22.9 billion ($32.2 billion) contract to dramatically increase Tomahawk cruise missile production, with annual output set to exceed 1,000 missiles as the US and its allies expand long-range precision-strike inventories.
Raytheon, an RTX business, has been awarded a US$22.9 billion ($32.2 billion) contract to accelerate production of Tomahawk cruise missiles for the US Navy over the next seven years.
The agreement, awarded under the US Department of War’s Arsenal of Freedom initiative, is designed to provide a stable, predictable supply of Tomahawk missiles for the US Navy and allied forces.
Under the contract, Raytheon will ramp up annual production beyond 1,000 missiles, alongside associated support and sustainment activities.
Raytheon president Phil Jasper said the contract would support major investment across the company’s workforce, technology, supply chain and manufacturing infrastructure.
“Tomahawk is the Navy’s most important strike weapon,” Jasper said, highlighting its ability to engage hostile forces at long range without exposing sailors to direct risk.
The agreement comes as demand for long-range precision weapons continues to increase, with the US seeking to expand its stocks of critical munitions and strengthen the industrial base supporting sustained high-intensity operations.
Raytheon has already been increasing Tomahawk production, delivering three times as many missiles during the first half of 2026 as it did during the corresponding period in 2025.
The latest contract will support further expansion, with Raytheon working with hundreds of small and medium-sized suppliers across the United States to increase manufacturing capacity and strengthen the missile’s supply chain.
Tomahawk remains one of the US military’s most established long-range strike weapons, having accumulated decades of operational experience.
The missile provides commanders with a long-range precision-strike option against high-value targets and can be launched from multiple platforms, including surface ships and submarines.
The production expansion is also significant for US allies operating or acquiring platforms capable of employing Tomahawk, providing greater confidence in the long-term availability of the weapon.
For Australia, which is acquiring Tomahawk for the Royal Australian Navy’s Hobart Class air warfare destroyers and Virginia Class nuclear-powered submarines, increased US production could provide greater depth in the allied long-range strike industrial base.
The seven-year agreement represents a major shift towards sustained high-rate production rather than periodic procurement, giving Raytheon and its suppliers greater certainty to invest in additional manufacturing capacity.
With annual output set to surpass 1,000 missiles, the expansion will significantly increase the volume of long-range precision weapons available to US and allied forces.
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