00:00U.S. Navy awards Raytheon $22.9 billion contract to ramp up Tomahawk missile production.
00:06The U.S. Department of War announced on Monday, August 17, 2026, that the Navy has awarded Raytheon,
00:13an RTX business, an unprecedented $22.9 billion seven-year contract to dramatically accelerate
00:20production of Tomahawk cruise missiles. Why now? The Tomahawk is the Navy's primary long-range
00:26strike weapon, and the U.S. arsenal has been significantly drawn down. According to a July
00:31analysis by the Center for Strategic and International Studies, American forces had
00:36expended roughly a third of the national Tomahawk inventory, including missiles fired during strikes
00:40on Yemen's Houthis and during the 12-day war with Iran. Acting Navy Secretary Hung Kao said the
00:46contract reinforces the department's commitment to rebuilding the defense industrial base.
00:51While Raytheon President Phil Jasper called the Tomahawk,
00:54the Navy's most important strike weapon, able to target hostile forces hundreds of miles away
00:59without ever risking the lives of our sailors.
01:03Scale of the ramp-up
01:05Raytheon currently produces about 60 Tomahawks a year. The new contract is meant to push annual
01:11output above 1,000 missiles, formalizing a framework agreement the Navy and Raytheon first signed in
01:17February 2026. However, a July report from the Watchdog Group Project on Government Oversight
01:23cautioned that funding alone won't quickly translate into more missiles. It estimated a
01:28Tomahawk takes about 47 months to deliver once a contract is signed, with manufacturing capacity,
01:34not money, the binding constraint, political context. The award comes amid reports of a broader
01:40U.S. munitions shortage tied to the Iran conflict. President Trump has pushed back on those concerns,
01:46telling Fox News,
01:47what we've used is peanuts. We have a lot of mid-level weapons. Separately, the Navy's FY 2027 budget request
01:56seeks 785 Tomahawks at roughly $7.5 million apiece, up sharply from 55 missiles the year before.
02:06Broader pattern. This deal follows a series of similar moves. The Trump administration has been
02:11signing multi-year agreements with major U.S. defense contractors to expand weapons production
02:16capacity, including deals earlier this month to boost output of Patriot and THAAD interceptor
02:21components. Analysts, including retired Marine Colonel and CSIS Senior Advisor Mark Kanshin,
02:27have noted the rebuild is also being framed around future contingencies beyond the Middle East,
02:33specifically the risk of a conflict with China in the Western Pacific. Background. The Tomahawk,
02:38in service since 1983, can be launched from ships or submarines to strike land targets with long
02:44range and high precision. It has been used extensively by the Navy in operations from the Middle East to
02:49the Balkans.
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