Raytheon, a unit of RTX Corp., has secured a $22.9 billion contract from the U.S. Navy to produce Tomahawk cruise missiles over the next 15 years, the Pentagon announced on Friday.
The indefinite-delivery, indefinite-quantity contract represents the largest single procurement of Tomahawk missiles in the program’s history, according to a statement from the U.S. Department of Defense. The agreement covers production, delivery, and associated support services for the long-range, all-weather subsonic cruise missiles, which are deployed aboard U.S. Navy surface ships and submarines.
The Tomahawk missile system, developed in the 1970s and first deployed in the 1980s, remains a cornerstone of U.S. naval strike capabilities. It is capable of delivering precision strikes against land and sea targets from distances exceeding 1,000 nautical miles. The Pentagon’s announcement did not specify delivery timelines or quantities but emphasized the contract’s role in sustaining and expanding the fleet’s operational readiness.
The contract follows a series of recent awards to Raytheon under the Tomahawk program, including a $1.2 billion modification in 2023 for additional missile production. The latest deal underscores the U.S. government’s commitment to modernizing and expanding its missile inventory amid rising global tensions and evolving security threats.
RTX, which reported $73.7 billion in revenue for 2023, has seen increased defense spending drive growth in its aerospace and defense segments. The company’s shares were up 0.4% in premarket trading following the contract announcement.
