Department of War Awards Raytheon $22.9 Billion Contract to Accelerate Tomahawk Cruise Missile Production

WASHINGTON, DC — The U.S. Department of War (Department of Defense) officially finalized a landmark seven-year procurement agreement on Monday awarding Raytheon, an operating business of RTX, a $22.9 billion multi-year contract to substantially expand production of Tomahawk cruise missiles for naval and allied forces.

Arsenal of Freedom Production Expansion

The award represents the largest dedicated munitions procurement package authorized under the administration's 'Arsenal of Freedom' initiative, structured to expand domestic defense industrial throughput and eliminate production bottlenecks. The multi-year contract establishes long-term procurement predictability, funding capital investments that will scale annual Tomahawk production capacity past 1,000 missiles per year.

Raytheon reported delivering triple the volume of Tomahawk systems in the first half of 2026 compared to the corresponding period in 2025, driven by automated tooling and multi-shift operations across manufacturing centers in Tucson, Arizona, and Huntsville, Alabama.

Supply Chain and Subcontractor Distribution

The multi-year procurement model integrates more than 350 small and medium-sized advanced manufacturing suppliers across 32 states, stabilizing rocket motor, guidance sensor, and titanium structural component deliveries. Acting Secretary of the Navy Hung Cao characterized the investment as a decisive step to replenish strategic reserves and guarantee sustained naval deterrence across contested maritime corridors.

Congressional Oversight and Delivery Milestones

Under statutory oversight provisions embedded in the defense appropriations framework, the Pentagon's Cost Assessment and Program Evaluation (CAPE) office will conduct bi-annual cost audits to ensure unit flyaway costs remain within established inflation bands. Initial expanded batch deliveries under the seven-year contract are scheduled to commence in Q2 2027.