US Navy awards Raytheon USD22.9 billion Tomahawk-production contract

The US Navy has awarded Raytheon a multiyear contract to ramp up production of Tomahawk missiles, like the one shown being launched here. (US Navy)

The US Navy (USN) awarded Raytheon a seven-year USD22.9 billion contract that provides funding for the company to make investments and produce more than 7,000 new-build, recertified and “modernised” Tomahawk missiles over the course of the contract, USN officials confirmed on 17 August.

USN officials have noted publicly since the beginning of 2026 a need to increase munitions production to replenish depleted stocks due to recent combat operations.

Funding for the contract includes about USD257 million meant for low-rate production in the fiscal year (FY) 2026 USN base budget, about USD3 billion in the USN FY2027 budget request, with anticipated budget funding requests for FY2028 through FY2032, a USN spokesperson told Janes on 17 August.

The navy had said in its proposed fiscal year (FY) 2027 budget that it planned to start a new multiyear buy for Tomahawks in FY 2027, procuring 785 – 58 through discretionary funding and 727 through mandatory funding, according to budget documents released in April. Throughout the FYDP, the navy said in its budget request it wanted to procure 2,996.

Raytheon and the Defense Department confirmed an agreement on 4 February to increase production and delivery speed for Tomahawks to 1,000 missiles annually.

For more, please see: Iran conflict 2026: US forces employ suspected new variant of Tomahawk cruise missile