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The U.S. Navy has awarded RTX a $22.9 billion, seven-year contract to sharply increase production of Tomahawk cruise missiles as the U.S. military moves to replenish weapons inventories and expand its capacity to produce long-range precision-strike systems.

The agreement is designed to increase deliveries of Tomahawk missiles to the U.S. Navy and the wider Joint Force while giving RTX greater stability to expand its workforce, increase manufacturing capacity and strengthen its supply chain.

The deal comes as the Pentagon pushes the defense industry to accelerate weapons production and reduce the time needed to procure and deliver critical munitions.

The effort has gained greater urgency as the U.S. military has used weapons in recent operations while also supplying large quantities of arms to allies, putting additional pressure on existing inventories of precision-guided and air-defense systems.

Major Expansion in Tomahawk Production

Raytheon currently produces about 60 Tomahawk missiles a year. Under the new agreement, annual production is expected to rise to more than 1,000 missiles. The increase would represent a major expansion of the production line and give the U.S. military a substantially larger supply of long-range precision-strike weapons.

The Tomahawk is a sea-launched cruise missile used by the U.S. Navy to conduct long-range strikes against land targets. It can be launched from both surface ships and submarines and has remained a key component of the Navy’s long-range strike capability.

The new contract formalizes a framework agreement reached between the U.S. military and Raytheon in February.

The seven-year arrangement is intended to provide RTX with the confidence to make major investments in facilities, equipment, and personnel while allowing the company to expand its manufacturing output.

The Pentagon also expects the agreement to reduce procurement lead times and speed the delivery of critical weapons to operational forces.

“The Department called upon industry to expand munitions production, and RTX has answered that call,” said Michael P. Duffey, Under Secretary of Defense for Acquisition and Sustainment. “This Tomahawk award increases our ability to equip the Joint Force, ensuring our Warfighters never face a fair fight.”

US Navy’s Long-Range Strike Capability

Acting Secretary of the Navy Hung Cao described the agreement as a major investment in the Navy’s ability to provide long-range firepower. “Guaranteeing our naval and joint forces have the lethal firepower they need to deter aggression and protect the homeland is paramount,” Cao said.

“This landmark $22.9 billion investment will accelerate Tomahawk missile delivery to our warfighters at unprecedented speed,” Cao said, adding that the Navy is working with industry to expand the capacity of the U.S. munitions industrial base and meet the demands of current operations.

The contract is therefore focused on more than simply increasing the number of missiles produced. It is also intended to expand the workforce, increase manufacturing throughput, and strengthen the network of suppliers supporting the Tomahawk program.

The Navy’s Portfolio Acquisition Executive Munitions organization oversees the development, procurement, and delivery of naval munitions and strike capabilities. It works with industry to expand production capacity and ensure that the fleet has the weapons needed for operations.

The Tomahawk contract forms part of a broader effort by the Pentagon to increase production of critical weapons and rebuild inventories.

The U.S. military has supplied significant quantities of weapons to allies while also using precision-guided munitions in recent operations, including the conflict with Iran. That combination has increased pressure to replenish stocks and strengthen domestic production capacity.

The Pentagon has responded by pursuing larger and longer-term agreements with major defense contractors.

Earlier this month, the military signed agreements aimed at increasing production of components used in Patriot and THAAD interceptor missiles. Those efforts are part of the same broader push to strengthen the industrial base supporting both offensive weapons and air and missile defense systems.

Long-term contracts can also give defense companies greater certainty to invest in factories, equipment and skilled workers.

That approach is increasingly important as military planners prepare for conflicts in which large quantities of precision-guided weapons could be consumed faster than traditional production lines can replace them.

Need for Industrial Expansion

The planned increase to more than 1,000 Tomahawks a year would significantly expand the U.S. Navy’s ability to maintain and replenish its long-range strike inventory.

A larger production base could also provide greater flexibility during prolonged military operations, when missile consumption can quickly reduce available stocks. The agreement reflects a wider shift in U.S. defense procurement toward expanding production capacity alongside immediate weapons purchases.

The $22.9 billion deal gives RTX a substantial multi-year commitment while allowing the U.S. Navy to accelerate deliveries of one of its principal long-range strike weapons.