The Pentagon has signed a $22.9 billion, seven-year contract with Raytheon to dramatically scale up Tomahawk cruise missile manufacturing, aiming to raise annual output to more than 1,000 missiles from roughly 60. The deal completes a preliminary framework reached in February and is part of the Trump administration's push for multi-year defense agreements to spur domestic contractor investment.
The agreement follows severe depletion of U.S. weapons stockpiles during the war with Iran, which began on February 28. More than 1,000 Tomahawks were fired in the first six weeks alone, while Patriot interceptor stocks were estimated to have fallen by half. Acting Navy Secretary Hung Cao said the department is using every available tool to meet operational demands.
Restoring Tomahawk inventories to pre-conflict levels could take until 2031. Raytheon has already tripled deliveries in the first half of 2026 compared with a year earlier. The military also signed contracts this month to accelerate Patriot and THAAD parts manufacturing, following a $58.6 billion Lockheed Martin Patriot deal announced in July.