Navy awards Raytheon $22.9B to boost Tomahawk production

(The Center Square) – The U.S. Navy awarded Raytheon a $22.9 billion, multi-year contract to accelerate production of Tomahawk cruise missiles, aiming to build more than 1,000 of the long-range strike weapons a year.

The Department of War announced the award Monday as part of its "Arsenal of Freedom" initiative to expand weapons production.

"This landmark $22.9 billion investment will accelerate Tomahawk missile delivery to our warfighters at unprecedented speed," said Acting Secretary of the Navy Hung Cao.

Raytheon, an RTX business, said the contract supports increasing annual output to more than 1,000 Tomahawks and that it is investing in its workforce, supply chain and facilities to meet demand.

"Tomahawk is the Navy's most important strike weapon, able to target hostile forces hundreds of miles away without ever risking the lives of our sailors," Raytheon President Phil Jasper said.

The contract comes as the U.S. works to rebuild a depleted arsenal. American forces have expended about a third of the nation's Tomahawk inventory, the Center for Strategic and International Studies estimated in a July analysis, including at least 135 fired during the campaign against Yemen's Houthis and 24 during the Twelve Day War with Iran.

More from this section

Are there too many ingredients in our snacks?

Pa. House Majority Policy Committee roundtable probes housing crisis solutions

Going to the Hollywood Bowl? Make the Hours Before the Show Count

The Navy's own budget documents show how sharply spending is climbing. The department's fiscal 2027 request seeks 785 Tomahawks for $5.88 billion, about $7.5 million per missile, up from 55 missiles the year before, and the budget says the Pentagon will "leverage the Tomahawk Multi-Year Procurement contract that the Department will initiate in FY 2026" to lower unit costs and speed delivery.

But more money will not quickly yield more missiles, according to a July report by the Project On Government Oversight. The watchdog group estimated current Tomahawk production at about 60 missiles a year and said the weapon takes 47 months to deliver once a contract is signed, with manufacturing capacity, not funding, as the binding constraint. POGO found the Tomahawk to be the military's most depleted munition, with recent strikes consuming far more than the U.S. had produced in recent years.

The department publicized the $22.9 billion award through news releases from the Department of War and Raytheon, but the contract does not appear on the department's daily list of contracts, where the government itemizes major awards and the funding obligated to them.

The award is part of a broader Department of War effort to expand munitions production under what it calls its Acquisition Transformation Strategy. The Center Square previously reported that the department signed framework agreements with Northrop Grumman in August to expand production of PAC-3 and THAAD missile-defense interceptors, deals that fed much larger prime contracts.

"The Department called upon industry to expand munitions production, and RTX has answered that call," said Under Secretary of War for Acquisition and Sustainment Michael P. Duffey.