US Army Awards Raytheon $536 Million to Keep TOW Missile Line Running

The US Army awarded Raytheon (RTX) a $536 million contract modification on August 7, 2026, covering continued full-rate production and engineering services for the BGM-71 TOW anti-tank guided missile system. The modification brings the contract’s cumulative value to roughly $750.8 million.

At a Glance

Contract modification finalized August 7, 2026, valued at $536 million.
Awarded by Army Contracting Command, Redstone Arsenal, Alabama.
Covers full-rate production of the BGM-71 TOW system plus related engineering services.
Work is scheduled to run through August 31, 2027.
$54.86 million in fiscal year 2026 procurement funds was obligated at time of award.
Production work will take place at Raytheon’s Tucson, Arizona facility.

Background

The BGM-71 TOW — Tube-launched, Optically tracked, Wire-guided — entered US Army service in 1970, making it a 55-year-old design still in active production. Its longevity owes largely to a steady stream of munition upgrades and compatible launch platforms that have kept it relevant across changing battlefield conditions, from Bradley Fighting Vehicles and HMMWV-mounted launchers to helicopter-fired variants.

Continued full-rate production reflects sustained demand for anti-armor munitions among the US Army and allied forces alike. The war in Ukraine has underscored, again, how central portable and vehicle-mounted anti-tank guided missiles remain to contemporary combat, prompting the United States and partner nations to replenish stockpiles and expand available inventory. Consecutive contract modifications issued through Redstone Arsenal’s Army Contracting Command suggest the TOW production line will stay active for years to come.

Raytheon’s Tucson facility functions as the company’s hub for missile and precision-guidance manufacturing, also producing systems including Javelin, Stinger, and AMRAAM. Concentrating anti-tank munitions production at a single site reflects a deliberate approach to efficiency and capacity planning within the broader supply chain.

Regional Impact

This contract is a bilateral arrangement between the US Army and Raytheon, with no direct bearing on any third country. That said, TOW remains fielded across numerous NATO members and allied militaries, meaning sustained US production capacity indirectly underwrites those partners’ future procurement and spare-parts needs. The stability of anti-tank weapons supply chains within NATO continues to matter for the alliance’s broader anti-armor deterrence posture.

FAQ

What is the TOW missile system used for?
BGM-71 TOW is a wire- or wireless-guided anti-tank missile system used against armored vehicles and fortified targets.

Why did the total contract value rise to $750.8 million?
The $536 million modification issued on August 7, 2026 was added to prior contract amounts, bringing the cumulative total to that figure.

Where will the work be performed?
Work will be carried out at Raytheon’s facility in Tucson, Arizona, with completion scheduled by August 31, 2027.