The U.S. Department of Defense awarded RTX's Raytheon a multi-year contract to significantly increase the production of Tomahawk cruise missiles.
The move signals a massive effort to replenish military stockpiles that were drained during the war with Iran. It also aims to meet rising munitions demands from the U.S. and its allies.
The contract is valued at approximately $23 billion [2], though some reports place the figure between $22 billion [3] and $22.9 billion [1]. This agreement spans a seven-year period [2] and focuses on scaling the manufacturing capacity of Raytheon's U.S. production facilities.
Under the terms of the deal, the Pentagon is targeting a 17-fold increase [4] in missile output. The goal is to produce more than 1,000 Tomahawk missiles per year [1]. This ramp-up represents a strategic shift in production speed to ensure the military can sustain long-term operations.
Defense officials said the surge is necessary because the military burned through many of its existing missiles while fighting Iran [1]. The current effort to accelerate production is part of a broader push by the Pentagon to ask defense firms to increase weapons output as stockpiles remain low [5].
The Tomahawk is a cornerstone of U.S. long-range strike capabilities. By securing this multi-year commitment, the Navy and the Pentagon aim to stabilize the supply chain, and ensure a steady flow of munitions to avoid future shortages during active conflicts.
“The Pentagon is targeting a 17-fold increase in missile output.”
The scale of this contract reflects a transition from peacetime procurement to a wartime production footing. By committing to a seven-year production window and a massive increase in annual volume, the U.S. is acknowledging that previous stockpile levels were insufficient for high-intensity conflicts. This shift suggests a long-term strategic pivot toward maintaining higher readiness levels in response to persistent regional instability.
