$23B Tomahawk deal: Raytheon to ramp up missile production beyond 1,000 per year

The U.S. defense contractor Raytheon has secured a seven-year contract with the U.S. Navy worth $22.9 billion under the Pentagon's "Arsenal of Freedom" program. The deal is aimed at accelerating and scaling up production of Tomahawk cruise missiles to more than 1,000 units annually.

Initial framework agreements between Raytheon and the U.S. Department of Defense to ramp up Tomahawk output were signed in February 2026. The new contract now formalizes a long-term commitment to significantly boost manufacturing capacity.

"We are making significant investments in our workforce, technology, supply chain, and facilities to substantially increase production capacity and meet growing demand," said Phil Jasper, president of Raytheon, as quoted in the company's press release.

In the first half of 2026, RTX — the parent company that includes Raytheon — delivered three times as many Tomahawk missiles as it did during the same period in 2025. The company says it will continue to invest in expanding production, and the new agreement involves close collaboration with hundreds of small and medium-sized suppliers across the United States to rapidly scale up output.

The Tomahawk is a long-range, subsonic cruise missile designed to strike land targets. Depending on the variant, its range exceeds 1,600 kilometers, and the latest versions are also capable of engaging surface ships. The missile has been a cornerstone of U.S. naval strike capabilities for decades and is now seeing renewed demand amid global security shifts.

Earlier in July 2026, Japan conducted its first live-fire test of a long-range Tomahawk missile, marking a significant step in the country's defense posture.