The Department of War and Raytheon agreed on Monday to a contract worth $22.9 billion to significantly increase production of Tomahawk cruise missiles for the Navy, an important weapon in the war with Iran.
The announcement comes as the department seeks to expand the capacity of the defense industrial base not only to replenish U.S. stockpiles reduced during the war in Iran and through deals with allies, but also to surpass the inventories from before the conflict began.
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Raytheon, part of the broader RTX defense company, said the contract would last for seven years, and its goal is to increase Tomahawk annual production to more than 1,000 missiles per year. The longer contract will allow Raytheon to expand its workforce and manufacturing capabilities without fear that the military may decide it no longer needs the capability.
The missile is one of the military’s primary sea-launched, long-range strike weapons that can be launched by ships and submarines against land targets.
“The Department called upon industry to expand munitions production, and RTX has answered that call,” said Undersecretary of War for Acquisition and Sustainment Michael P. Duffey. “This Tomahawk award increases our ability to equip the Joint Force, ensuring our Warfighters never face a fair fight.”
The Navy reportedly fired more than 850 of them during the first month of the Iran war alone, according to the Washington Post. It had approximately 3,100 Tomahawks in its inventory prior to the war, per an estimate from the Center for Strategic and International Studies.
The Navy’s fiscal 2027 budget request called for $3 billion to replenish its stockpile of Tomahawk missiles, enough money to produce 785 missiles. The request far exceeds the $257 million Congress allocated for these missiles in last year’s budget, which paid for 58 missiles.
“Guaranteeing our naval and joint forces have the lethal firepower they need to deter aggression and protect the homeland is paramount,” said acting Secretary of the Navy Hung Cao. “This landmark $22.9 billion investment will accelerate Tomahawk missile delivery to our warfighters at unprecedented speed. 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.”
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Monday’s contract announcement comes after the two sides announced a framework deal back in February.
The Pentagon has announced several framework agreements in recent months to increase production of various critical munitions and the parts that go within them. While pushing to increase production and capacity, administration and Pentagon officials maintain that the military has everything it needs to carry out any order from the president.
