US Awards Weapon Manufacturer $22.9bn Contract To Boost Missile Production

The United States military has awarded Raytheon, an RTX unit, a $22.9bn, seven-year contract to dramatically increase production of Tomahawk cruise missiles as Washington moves to replenish its stocks of high-tech weaponry.

The contract will allow Raytheon to increase annual Tomahawk production to more than 1,000 missiles, up from its current rate of about 60 a year, according to the company.

The US has supplied large quantities of weapons to allies and used munitions during the Iran conflict, raising concerns over its stockpiles of air defence and precision-guided weapons.

Acting Secretary of the Navy Hung Cao said the contract would accelerate deliveries of Tomahawk missiles and ensure US forces have the firepower needed for future operations.

The Tomahawk is a long-range precision-strike cruise missile launched from US Navy ships and submarines and used to strike targets hundreds of miles away.

The deal formalises a framework agreement reached between the US military and Raytheon in February to rapidly expand Tomahawk production.

Raytheon said it has already delivered three times more Tomahawks in the first half of 2026 than during the same period last year and will invest in its workforce, facilities, technology and supply chain to further increase production.