August 17, 2026

Raytheon’s New Contract and Tomahawk Production Surge

U.S. defense company Raytheon has announced it will significantly speed up the production of long-range Tomahawk cruise missiles. This decision follows a new deal with the Department of Defense (DOD). The focus comes amid concerns about reduced stockpiles due to ongoing conflicts.

Raytheon disclosed on Monday an extensive contract with the DOD valued at nearly $23 billion. The contract spans seven years. Recent reforms in DOD contracting have pushed for faster production of military equipment as global demand rises.

Countries in Europe and Canada are under pressure to increase military purchases. President Donald Trump’s administration has emphasized this. However, available missile stockpiles face shortages due to U.S. engagements with Iran and Russia’s conflict with Ukraine.

Despite high-intensity operations in Iran, the White House denies any munitions shortages. Tomahawks, crucial to the U.S. Navy, are launched from ships such as destroyers. First used in the 1980s, they can reach targets 1,000 miles away and are effective tools in military operations. New models allow for target changes mid-flight and can linger over areas before striking.

Reports in August indicated that the U.S. has used nearly half of its Tomahawk stockpile since February. Over 1,000 missiles were deployed between February and April this year. More than 850 were launched in the first month alone.

Raytheon declared plans in February to increase annual Tomahawk output to over 1,000. This marks a fivefold rise from recent years. RTX, Raytheon’s parent company, reported tripling its Tomahawk production in the first half of 2026 compared to the same period in 2025.

Restoring Tomahawk missile inventories to pre-war numbers will take an estimated four years. This assessment comes from the Center for Strategic and International Studies, a D.C.-based think tank.

Raytheon President Phil Jasper highlighted the importance of Tomahawks, describing them as key strike weapons for the Navy. They allow for targeting enemies at great distances without risking sailor safety.

Michael Duffey, the DOD’s undersecretary for acquisition and sustainment, noted the Pentagon’s call for increased munitions production and capacity. The U.S. is balancing domestic needs with international sales, as allies like Japan and Australia await deliveries.

Japan ordered 400 Tomahawks in 2024, but delivery delays were communicated in May to the Japanese defense minister. Australia and the Netherlands have also placed orders, with plans for incorporation into naval vessels.

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