US Navy Awards $22.9 Billion Tomahawk Missile Contract to Raytheon

The United States Navy awarded a $22.9 billion multi-year contract to Raytheon, a division of RTX Corporation, to dramatically accelerate the production of Tomahawk cruise missiles. The seven-year agreement, running through 2032, aims to increase annual output from approximately 60 missiles to more than 1,000, with a total goal of producing over 7,000 missiles. This includes kits to convert land-attack versions into ship-killers.

The procurement is part of the Department of War's Arsenal of Freedom initiative and the Acquisition Transformation Strategy launched by Secretary Pete Hegseth in November 2025. The push follows the depletion of high-tech weaponry stocks used in campaigns against Yemen's Houthis and a five-month war with Iran, including Operation Epic Fury. Reports indicate the U.S. fired more than 850 Tomahawks in the first month of the Iran conflict, consuming roughly one-third of the pre-war inventory.

While the Center for Strategic and International Studies and the Project On Government Oversight warned that manufacturing constraints could delay full replacement until 2031, President Donald Trump dismissed concerns over diminished stockpiles, stating that the amount used was "peanuts." Simultaneously, Trump asserted "total control over the strait" of Hormuz and proposed declaring it U.S. territory while maintaining a naval blockade on Iranian ports.

To meet the surging demand, Raytheon President Phil Jasper announced significant investments in workforce, technology, and supply chains. The broader administration has requested a $1.5 trillion defense budget for fiscal year 2027 and $87.6 billion in supplemental funding for fiscal year 2026 to sustain military readiness.