The U.S. Navy announced on Monday that it awarded RTX's Raytheon unit a $22.9 billion contract to increase output of Tomahawk missiles.

The multi-year agreement focuses on expanding manufacturing capacity for the long-range, precision-guided cruise missiles. Officials said the deal will support higher production rates to meet current and future operational needs.

The United States has supplied large amounts of arms to allies while also using munitions in the Iran conflict, raising concerns about inventories of air defense and production capacity. The new contract directly addresses those pressures by scaling up Tomahawk availability.

Raytheon will use the funding to upgrade facilities and supply chains. The company has long been the primary manufacturer of the Tomahawk, which has served as a key strike weapon for the Navy and allied forces.

Defense analysts note that sustained high demand for precision munitions has strained existing stockpiles across multiple systems. The Tomahawk award represents one of the largest recent investments aimed at rebuilding reserves.

The Navy did not disclose specific delivery timelines or annual production targets in the initial announcement. Further details are expected in follow-on statements from the service and the contractor.