Dive Brief:
- The U.S. Navy has awarded RTX subsidiary Raytheon a $22.9 billion contract to ramp up production of Tomahawk missiles, the Department of Defense announced Monday.
- The funds will go toward expanding Raytheon’s workforce, producing more missiles in a shorter amount of time and stabilizing the company’s supply chains.
- DOD and RTX did not disclose where the work will be completed, and the company did not respond to questions about its manufacturing facilities.
Dive Insight:
The seven-year contract follows a handful of agreements between Raytheon and DOD signed at the beginning of 2026, supporting the company’s yearly production rate of more than 1,000 Tomahawk missiles.
In January, Raytheon was awarded an additional $380.8 million for an existing contract for recertifying and upgrading Tomahawk missiles. Most of that work is set to be completed at Raytheon’s Tucson, Arizona, facility, which makes, researches and develops its large portfolio of defense programs and capabilities. The rest will be completed in facilities across the United States and Canada.
RTX has been spending heavily over the past few years to bolster Tomahawk missile production, as well as other munitions, according to the press release. The investments have led to delivering three times more Tomahawks in the first half of 2026 compared to the same period last year, the company said.
With the new multibillion-dollar contract, RTX will also be able to work with small and midsized suppliers across the United States to scale up output.
“By working closely with industry to expand our munitions industrial base’s capacity, the Department is utilizing every available tool to meet the demands of our current operations, ensuring they are equipped to fight, win, and come home safe,” Acting Secretary of the Navy Hung Cao said in a statement.
Additionally, DOD announced agreements Aug. 14 with RTX and Boeing to increase component production for the Standard Missile-3 Block IB and the Standard Missile-3 Block IIA. Boeing will drive the component manufacturing ramp-up to move the parts from the factory floor to the fleet.
The deals support the “Arsenal of Freedom” strategy to rebuild the defense industrial base under DOD’s Acquisition Transformation Strategy, according to the press release. The Acquisition Transformation Strategy aims to increase and accelerate production capacity for key systems, weapons and munitions for the U.S. military and prioritize the country’s allies and partners.
The agreement was overseen by the Navy’s Portfolio Acquisition Executive Munitions department, which it established in May. The PAE prioritizes high-level acquisition strategies and carries out the urgency to boost munitions deliveries and production.
The PAE Munitions focuses on four pillars: weapons industrial base, air weapons, surface weapons, and advanced capabilities and innovation.
The PAE is a new role established under the National Defense Authorization Act for fiscal year 2026 in the agency’s efforts to accelerate production as the U.S. forces experience a weapons shortage in the country's war with Iran.
