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      RTX Secures $23 Billion Contract to Increase Tomahawk Missile Production for US Navy

      RTX has been awarded a $22.9 billion contract by the US Navy to significantly enhance the production of Tomahawk cruise missiles. This contract is part of a larger initiative to transform the Pentagon's munitions supply chain from a peacetime pace to a more urgent wartime production level. The agreement will increase Tomahawk production from approximately 60 missiles per year to over 1,000, covering both Land Attack and Maritime Strike variants.

      The framework agreements, which span up to seven years, also include plans to boost production of other missile systems. The AMRAAM air-to-air missile output is expected to reach at least 1,900 units, while production of the SM-6 missile will exceed 500 units. Additionally, SM-3 missile variants will see production rates increase significantly, by two to four times current levels. Manufacturing will take place at RTX facilities in Tucson, Arizona; Huntsville, Alabama; and Andover, Massachusetts, which have recently undergone a $2.6 billion capital investment to prepare for this increased output.

      In conjunction with the production contract, Raytheon has also secured a $476.5 million modification for Tomahawk missile modernization and sustainment, ensuring the existing fleet remains operational through 2029. RTX CEO Chris Calio emphasized that these agreements represent a new approach to collaboration between the government and the defense industry, aligning with the administration's Acquisition Transformation Strategy aimed at accelerating military technology delivery. The financial implications of these agreements have already been incorporated into RTX's outlook for 2026.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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