U.S. Navy Awards Raytheon a $22.9 Billion Contract to Boost Tomahawk Missile Production
The U.S. military has awarded RTX Corporation’s (NYSE:RTX) Raytheon business a seven-year, $22.9 billion contract to significantly increase the production of Tomahawk missiles. This follows heightened demand due to ongoing conflicts and the need to replenish stockpiles used in operations involving Iran. The order is part of the Pentagon's 'Arsenal of Freedom' initiative aimed at expanding output for critical defense systems. RTX reported a Q2 backlog of $289 billion, with this new contract adding nearly $23 billion and strengthening future revenue visibility. Raytheon has already ramped up Tomahawk production threefold in 2026 compared to the same period last year. The company recently raised its full-year sales guidance due to sustained demand across both commercial aviation maintenance and military systems. Despite positive momentum, skeptics note that this contract represents only about 3.4% of RTX’s estimated annual revenue for 2026. Execution risks may arise from scaling up production by nearly 17 times current levels, which could strain the workforce and supply chain.
Tickers: $RTX
Topics: Arsenal of Freedom RTX Corporation (NYSE: RTX) Tomahawk missiles U.S. Navy