The U.S. Navy on Monday awarded RTX Corp.’s (NYSE:RTX) Raytheon a $22.9 billion, seven-year contract to dramatically expand Tomahawk missile production as the Pentagon races to rebuild precision-weapon stockpiles depleted by the Iran war and other global commitments.
Navy Seeks Massive Tomahawk Production Surge
Acting Navy Secretary Hung Cao, in a press release, said the deal would deliver Tomahawks at “unprecedented speed,” adding that Washington is using “every available tool” to ensure forces have the “lethal firepower they need.” Raytheon plans to lift annual output from roughly 60 missiles today to more than 1,000.
“Tomahawk is the Navy’s most important strike weapon,” Raytheon President Phil Jasper said in a separate press release issued by the company, adding that RTX is investing in its workforce, technology, supply chain and factories to meet “surging demand.”
The production surge follows severe wartime drawdowns. Reuters reported this month that the U.S. had used “virtually all” of some Army long-range precision missiles during the Iran conflict and deployed nearly half its Tomahawk inventory. The shortage has increased pressure on defense manufacturers, an issue that was recently highlighted as a growing readiness risk involving Iran, China and Russia.
RTX Adds More Major Defense Contracts
RTX has stacked up other major government awards. Raytheon received a $745 million Missile Defense Agency contract this month for SM-3 Block IIA interceptors and a $1.8 billion Navy extension in July for SPY-6 radars. In June, it won a $1.1 billion Navy contract for AIM-9X Block II missiles, with production capacity targeted at 2,500 annually.
Defense Demand Powers Stronger RTX Results
RTX’s defense business has delivered stronger results amid robust demand for its missile and air-defense systems.
RTX reported second-quarter sales of $24.71 billion, above Wall Street’s $22.9 billion estimate, while adjusted earnings of $1.89 per share topped expectations of $1.66. Its backlog jumped 22% to $289 billion, including $119 billion in defense orders. RTX subsequently raised its 2026 sales outlook to $95 billion-$96 billion and adjusted EPS guidance to $7.10-$7.25.
Raytheon’s defense business alone posted $8.27 billion in Q2 sales, up 18%, as demand surged for Patriot, Standard Missile and AMRAAM systems.
The Tomahawk award formalizes a February framework agreement that gives RTX enough long-term certainty to invest aggressively in production capacity while Washington rebuilds its arsenal.
Benzinga’s Edge Rankings indicate that RTX stock maintains a strong price trend in the Short, Long and Medium terms, with a poor value ranking.
Price Action: RTX stock was up 0.255 to $222.20 in after-market trading on Monday.
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