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U.S. Army enhances anti-tank firepower with $271M Raytheon TOW missile production deal.
The U.S. Army awarded Raytheon a $271.4 million contract to produce TOW anti-tank missiles in Tucson, Arizona. The move highlights growing demand for reliable anti-armor weapons as conflicts drive higher usage worldwide.
U.S. Department of War confirmed on 22 September, 2025, a $271.4 million contract modification to Raytheon Missile and Defense in Tucson for full-rate production of the Tube-Launched, Optically Tracked, Wire-Guided Weapon System (TOW), including the TOW Obsolescence and Safety 2B missile variant. The work remains centered in Arizona with an expected completion on 29 February 2028. Funding is split across multiple fiscal years, with roughly half drawn from missile procurement lines in 2023 and 2024 and the balance from other Army procurement across 2023 to 2025. The Army is locking in supply of a long-serving anti-armor staple at a moment when anti-tank guided munitions are being fired daily in real conflicts. The 2B variant targeted in this award is the top-attack version, designed to defeat modern armor by striking from above rather than punching straight through the front.
The TOW 2B is a tube-launched, optically tracked, command-guided missile with a range of up to 4 km, designed for top-attack strikes using twin explosively formed penetrators to defeat modern armored vehicles and fortified positions (Picture source: U.S. DoW).
The TOW system is tube-launched and semi-automatically guided by the operator who keeps the sight on the target while the launcher and missile handle the rest. Historically the command link was wire. Later, a radio frequency guidance link was fielded for platforms that need the extra range and flexibility. What matters for crews is that TOW still operates in a command-to-line-of-sight mode. No reliance on GPS, no satellite uplink. In a jammed environment where radio traffic is noisy and GPS can be spoofed, that attribute has only grown more valuable. The Improved Target Acquisition System, widely known as ITAS, layers thermal imaging, a laser rangefinder and a fire control computer on top, giving gunners the day-night reach they expect. On paper, the range sits around 3.75 kilometers for standard missiles and stretches past four kilometers for the longer-bodied Aero variants.
Instead of driving a shaped charge straight into armor on a direct trajectory, it flies a programmed profile over the target and triggers a pair of explosively formed penetrators downward. That top-attack geometry is meant to exploit thinner roof armor on tanks and infantry fighting vehicles. The Obsolescence and Safety update referenced in the award is an important piece of the contract. Missile programs of this age accumulate legacy components that go out of production and energetic materials that are due for modernization. OSA packages swap out aging parts, align the build with current safety standards and lock in producibility so the factory can keep a predictable rhythm. Raytheon’s line in Tucson, which has been delivering TOW for decades, is built around precisely that rhythm.
Operationally, dismounted teams can carry the tripod and a small stock of missiles to lock down a street or a ridgeline. Vehicle crews on Bradleys, JLTVs and legacy HMMWVs have the launcher integrated and ready. It can overwatch a sector for hours without giving away its position and then deliver a shot that forces any armored vehicle to behave, to slow down, to button up, or to take a different route. In urban fighting, older bunker-buster members of the family remain relevant against firing points behind masonry, though the 2B is optimized for armor defeat. Reload is manual and not instant, which is why teams typically fight in pairs or under the cover of suppressive fire. A small but real advantage in recent combat footage has been the system’s immunity to some of the actions that distract fire-and-forget seekers. If the operator can see, the missile can be guided.
The U.S. Army and many partners are expending anti-armor rounds faster than anticipated just a few years ago. Stocks flow to allies and then need to be backfilled. This is not only about the front-line vehicles either, mechanized formations plan around layered anti-armor fires, and even as newer weapons arrive, a dependable wire-guided or RF-guided system with a wide user community keeps planning simple. The cost per round sits in a band that allows meaningful quantities to be bought year after year. The 2028 completion date in the contract is a reminder that this is about industrial base as much as it is about inventory.
TOW can be employed from light tripods or from turrets with stabilized sights and digital fire control. It has the range to overwatch a company front and the accuracy to pick a target window. The 2B top-attack profile gives it a specialized role against tanks with active protection systems that can be saturated or deceived. Paired with reconnaissance drones that cue targets, TOW teams have been able to set ambushes with enough standoff to survive the counter-fire.
Several U.S. partners in the Middle East and Asia continue to field TOW, and the shared logistics tail eases coalition operations. European armies refreshing their mechanized fleets have kept a slot for a command-guided missile, even as they buy fire-and-forget rounds for infantry squads. For Washington the calculus is plain: sustaining TOW production through 2028 keeps an allied ecosystem alive and covers a capability that would otherwise leave gaps at battalion and brigade level. The sums involved are not as much important compared with major aircraft or ship programs, but they translate directly into usable combat power. In a world where inventories are being measured against real consumption rates, and where training cycles depend on live-fire, a contract modification like this is about making sure the stocks are full in case of a conflict.