Raytheon Wins $20.7 Billion AMRAAM Production Contract
Raytheon, the RTX business, has been awarded a $20.7 billion contract by the US Department of War to produce AMRAAM air-to-air missiles, with the company planning an annual output of at least 1,900 missiles. The award was announced on September 29, 2026.
The agreement has a five-year base period and two option years. The US Air Force, the US Navy and international customers buying through Foreign Military Sales all invest in the programme.
Raytheon AMRAAM Contract Covers Five Years and Two Options
| Item | Detail |
|---|---|
| Customer | US Department of War, for the Air Force, Navy and Foreign Military Sales customers |
| Contractor | Raytheon (RTX) |
| Value | $20.7 billion |
| Scope | Production of AIM-120 AMRAAM air-to-air missiles |
| Period | Five-year base period plus two option years |
| Planned output | At least 1,900 missiles a year, which the company says is nearly double earlier levels |
| Announced | September 29, 2026 |
Michael Duffey, the Department of War’s under secretary for acquisition and sustainment, said the award “strengthens our ability to equip the Joint Force and our allies with a proven air-to-air capability.” Raytheon said it works with hundreds of suppliers on the missile.
The company said annual production will rise to at least 1,900 missiles, nearly twice what it built before. That figure is a company target. The contract itself does not guarantee that every missile is ordered, and option years depend on the government exercising them.
What the AMRAAM Does and Who Flies It
AMRAAM is the AIM-120, an active radar-guided missile that can be launched at targets beyond visual range. Raytheon says it flies on 14 platforms and has more than 7,000 successful test and combat firings. It is also the main interceptor in the NASAMS ground-based air defence system, which we covered in our NASAMS range and operators report.
Forty-four countries operate the missile. That customer base is why a single US contract carries so much weight: allied orders are folded into the same production line, which Raytheon says it has been expanding in Europe since July 2026.
How This Award Compares With Recent AMRAAM Deals
| Award | Value | Detail |
|---|---|---|
| 2022 order | $972 million | Supply to US and other militaries (Defense News) |
| July 2025 contract | $3.5 billion | Described at the time as the largest in programme history (The Aviationist) |
| September 2026 contract | $20.7 billion | Five-year base, two option years, at least 1,900 missiles a year planned |
The new award is nearly six times the 2025 record. Comparing the two directly is imperfect, because the 2025 contract covered a single lot while the new agreement spans up to seven years. Read that way, the larger number reflects duration as much as demand. That reading is analysis, not a Raytheon claim.
European Production Expansion Alongside the US Line
Raytheon announced in July 2026 that it would expand AMRAAM production capacity in Europe, working with allied nations. The company has not tied that effort to this contract, and this award does not say where additional missiles will be built.
Demand has been rising across Europe as air forces replace stocks and fit the missile to new fighters and ground-based launchers. The same pressure is behind the NASAMS orders and the wider push to build interceptor stockpiles.
RTX Company Profile
| Item | Detail |
|---|---|
| Headquarters | Arlington, Virginia |
| Formed | April 3, 2020, through the merger of United Technologies aerospace units and Raytheon Company |
| Employees | More than 180,000 (2025) |
| Sales | $88.6 billion (2025) |
| Backlog | $289 billion (June 2026) |
| Chairman and CEO | Christopher T. Calio |
| Segments | Collins Aerospace, Pratt & Whitney, Raytheon |
AMRAAM Contract FAQ
How much is the Raytheon AMRAAM contract worth?
$20.7 billion, announced on September 29, 2026.
How many AMRAAM missiles will Raytheon build?
The company plans annual output of at least 1,900 missiles, nearly double its previous rate. The contract does not publish a fixed total.
How long does the contract run?
A five-year base period with two additional option years.
Who buys AMRAAM?
The US Air Force and Navy, and 44 countries in total operate the missile, many buying through Foreign Military Sales.
Is AMRAAM only an air-to-air missile?
No. It is also the main interceptor used in the NASAMS air defence system.
- Airforce Technology – “Raytheon wins $20.7bn Department of War contract for AMRAAM missiles” (September 29, 2026): airforce-technology.com
- The Aviationist – “Raytheon Secures Record-Breaking $3.5 Billion AMRAAM Missile Contract” (August 1, 2025): theaviationist.com
- Defense News – “Raytheon wins $972M order for advanced medium range air-to-air missile” (August 31, 2022): defensenews.com
- RTX company reports and Wikipedia – RTX Corporation (company data)
