Raytheon wins $22.9 billion Tomahawk contract as production ramps to more than 1,000 missiles a year

RTX said its Raytheon business has landed a major U.S. Navy contract for Tomahawk cruise missiles valued at $22.9 billion, according to a market report published Tuesday. The agreement is structured over seven years and includes a production ramp intended to raise annual output to more than 1,000 Tomahawk missiles.

Tomahawk is a long-range, precision strike cruise missile used by the U.S. Navy, and it is a key component of the service’s ability to conduct prompt, stand-off strikes. In production terms, cruise-missile programs are typically measured not just by the number of rounds delivered, but also by how steadily a prime can scale manufacturing capacity and sustain throughput over multiple years.

Under the terms described in the report, the Navy award includes a “seven-year production ramp,” with the specific output target set at more than 1,000 missiles per year once ramped. The scale of the award, $22.9 billion, indicates that the Navy and its partners want to maintain a longer runway for procurement and industrial capacity rather than relying only on shorter-burst buying.

RTX did not provide additional figures in the market post beyond the headline award value and the planned throughput increase. The report did not break out the contract’s year-by-year procurement schedule, the mix of missile variants, or whether the work includes ancillary services such as engineering, sustainment, or upgrades, all of which are commonly part of modern weapons agreements.

Still, for a defense prime, a multi-year production ramp can be strategically significant because it aligns financial planning with factory staffing, supply-chain commitments, and component qualification. For the U.S. Navy, longer-duration production agreements can also reduce uncertainty around delivery rates, which is particularly important for munitions that require specialized production lines and reliable access to constrained materials.

The Tomahawk missile industrial base is also highly sensitive to pacing, since scaling output depends on supplier readiness and the ability to sustain quality at higher volumes. A ramp to more than 1,000 missiles annually implies that the contract is intended to move the program from lower-rate production toward a higher sustained rate.

As of the time of publication, the market report did not include details such as the contract start date, whether options are included in the $22.9 billion total, the planned delivery cadence in each year of the contract, or the expected share of work between Raytheon and other teammates. Those elements can materially affect how analysts and defense buyers model near-term revenue timing and inventory build.

What to watch next is whether RTX or the U.S. Navy provides further specifics in subsequent disclosures, including any procurement phasing, delivery milestones, and updates on production status as the ramp progresses. Investors and defense watchers will likely focus on whether the output target is reached on schedule and how the award influences future rounds of Navy cruise-missile buying.