DEFENSE TECHNOLOGY

Department of War Awards $22.9 Billion Tomahawk Contract to Raytheon

The Department called upon industry to expand munitions production, and RTX has answered that call.

By Donna Joseph
Aug 17, 2026 9:59 PM Updated August 17, 2026
Department of War Awards $22.9 Billion Tomahawk Contract to Raytheon Photo by SBR

Summary
  • The Department of War awards Raytheon a $22.9 billion Navy contract to accelerate Tomahawk missile production.
  • The contract will expand manufacturing capacity, support workforce growth and strengthen the supply network behind Tomahawk production.
  • The award supports faster weapons delivery and the Navy’s effort to expand U.S. munitions production capacity.

WASHINGTON, August 17, 2026 — The Department of War has awarded Raytheon, an RTX business, a $22.9 billion contract through the U.S. Navy to accelerate production of Tomahawk missiles. The Tomahawk is a long-range strike weapon used by the Navy and joint forces. The award gives Raytheon the resources and long-term demand needed to expand its workforce, increase manufacturing capacity, and strengthen the network of companies involved in production. “The Department called upon industry to expand munitions production, and RTX has answered that call,” said Michael P. Duffey, Under Secretary of War for Acquisition and Sustainment. “This Tomahawk award increases our ability to equip the Joint Force, ensuring our Warfighters never face a fair fight.”

The contract is part of the Department’s effort to produce more munitions and deliver weapons to U.S. forces faster. The Department said the award will help reduce procurement lead times and speed delivery of critical weapons under its Acquisition Transformation Strategy. The long-term funding also gives Raytheon and its suppliers a basis for hiring workers, expanding factory capacity and strengthening the industrial network needed to support higher Tomahawk production.

Faster Tomahawk Production

The Tomahawk is a long-range precision-strike missile used by the U.S. Navy against targets at extended distances. Higher production will allow the Navy to replenish its missile inventory and provide additional weapons for current and future operations. The contract will support increased output at Raytheon manufacturing facilities and across the supplier network that provides components and materials for the missile. The Department said the award will help industry hire more workers, increase manufacturing throughput and strengthen supply chains. “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.”

Cao said the Department is working with industry to expand the capacity of the U.S. munitions industrial base and meet the demands of current operations. Higher Tomahawk output requires more factory capacity, workers, materials and component suppliers, making industrial capacity an important part of the production effort. The Department expects the investment to give manufacturers greater ability to increase missile output and provide the Navy with more weapons as operational requirements develop.

Podcast Thumbnail

Expanding the Munitions Industrial Base

The contract supports the Department’s effort to expand U.S. munitions production across manufacturers and suppliers. A large, long-term award gives Raytheon and its supplier network greater certainty when making investments in factories, hiring workers and increasing production capacity. The Department said the funding will also help fortify supply chains so manufacturers can obtain the materials and components required for higher Tomahawk production.

The award supports the Department’s Acquisition Transformation Strategy, which calls for faster delivery of critical weapons and shorter procurement timelines. The Department is linking military requirements with manufacturing capacity and delivery schedules so weapons can reach U.S. forces sooner. The $22.9 billion contract therefore supports higher Tomahawk production while giving the industrial base more capacity to sustain munitions output over time.

Photo credit: RTX

Role of PAE Munitions

Portfolio Acquisition Executive (PAE) Munitions is a Department of the Navy organization responsible for the development, procurement, and delivery of naval munitions and strike capabilities. PAE Munitions brings major weapons programs together and works with the weapons industrial base to increase production capacity and speed deliveries. The organization provides enterprise-level integration across munitions programs and helps ensure the Fleet has the weapons required for naval operations and long-range strike missions.

The Raytheon contract supports that work by increasing Tomahawk production and expanding the industrial capacity behind the program. PAE Munitions aligns weapons programs with the industrial base so the Navy can increase production and deliver critical munitions faster. The $22.9 billion award represents a major investment in the Tomahawk program and the U.S. munitions industrial base, with the Department seeking faster missile deliveries and stronger manufacturing and supply networks to support U.S. military operations.

“This landmark $22.9 billion investment will accelerate Tomahawk missile delivery to our warfighters at unprecedented speed.” — Acting Secretary of the Navy Hung Cao


What To Read Next

Task Force Falcon Strike to Scale Attack Drone Capabilities Across the Middle East

Task Force Falcon Strike to Scale Attack Drone Capabilities Across the Middle East

CENTCOM will establish a multinational force using one-way unmanned systems above, on, and below the sea with participation from U.S. personnel and regional partners.
U.S. Expands Production of Critical SM-3 Block IIA and SM-3 Block IB Munitions in Collaboration with Boeing and RTX
We are stabilizing our supply chains, expanding munitions production, and putting our entire defense industrial base on a wartime footing.
U.S. Jobless Claims Rise Moderately Amid Signs of Labor Market Stability
The employment data were released alongside the Labor Department’s report showing that the Producer Price Index for final demand was unchanged in July after a revised 0.1% decline in June.

Business