US Awards Raytheon $22.9 Billion Deal to Boost Tomahawk

The US Department of Defense recently awarded Raytheon, an RTX subsidiary, a $22.9 billion contract to significantly ramp up Tomahawk missile production, according to Reuters. The seven-year agreement will see annual Tomahawk output leap from the current 60 missiles to over 1,000. The deal formalizes a framework agreement signed between the US military and Raytheon in February and is part of the Trump administration's endeavor to bolster the US defense industrial base.

As reported by Reuters, the US has provided substantial weapon supplies to allies and used munitions in the Iran conflict, sparking concerns about dwindling inventories of air defense and precision-guided weapons. Acting Navy Secretary Hung Cao stated the contract would guarantee sufficient missile supplies for the US military, praising Raytheon's commitment to scaling up munitions output rapidly.

The sea-launched Tomahawk is a long-range precision-guided missile utilized by the US Navy against land targets from naval vessels and submarines. The Tomahawk contract is part of a broader Trump administration strategy to secure multi-year deals with major US defense contractors to increase their confidence in investing in new manufacturing facilities and equipment.

Earlier this month, the US military also inked agreements to boost the production of components for Patriot and THAAD interceptor missiles. President Trump previously hinted at General Motors and Ford potentially joining the effort by repurposing idle factory capacity for defense manufacturing, including Patriot air defense and Tomahawk cruise missiles.

This development comes amid growing concerns over US missile stockpiles and as Washington seeks to leverage more commercial manufacturing capacity to expedite weapons production.