Raytheon Wins $20.7 Billion Contract to Nearly Double AMRAAM Production

Raytheon has won a multiyear US Department of War contract worth up to $20.7 billion to build AMRAAM air-to-air missiles, a deal meant to nearly double output of the weapon. The award was signed on September 25 and announced on September 28 by RTX, with the Pentagon confirming details a day later.

The agreement runs for a five-year base period with two option years. It covers missiles for the US Air Force and Navy as well as allied customers buying through Foreign Military Sales, and it supports production of at least 1,900 AMRAAMs a year, according to RTX and Defense News.

A Contract Built Around a 1,900-Missile Annual Rate

The 1,900 figure is not new. It traces back to a framework agreement between Raytheon and the Pentagon earlier this year, which committed the company to that baseline rate. The new contract turns the framework into a funded production vehicle, at least on paper.

RTX says its 2025 output was already close to double the 2024 level. Defense News described the latest deal as the largest AMRAAM award to date, well above the $3.5 billion contract signed in July 2025 for the Air Force, Navy and allied buyers across Europe, Asia and the Middle East.

One caveat matters here. Defense News reported that Congress has not yet funded the full ceiling and characterized the award as provisional, so the $20.7 billion figure is the most the government can spend, not money already committed.

What Pentagon and Raytheon Officials Said

Michael Duffey, the Under Secretary of Defense 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.”

Phil Jasper, president of Raytheon, called AMRAAM “the world’s most trusted, combat-proven air dominance weapon for the United States and our allies.” The company also said it is putting money into its workforce, supply chain and facilities to scale up, and that it is working with hundreds of smaller suppliers. Air Force Technology reported that Raytheon announced a European production expansion effort in July.

Why AMRAAM Demand Keeps Climbing

The AIM-120 is fielded by 44 countries, according to the Defense News report, and it is carried on fighters from the F-16 and F/A-18 to the F-35 and Eurofighter. RTX says the missile has more than 7,000 successful live fires in testing and combat.

It is also the standard interceptor for NASAMS, the ground-based air defense system built by Kongsberg and Raytheon and used by a dozen or more countries. That dual role has pushed orders up as European and Middle Eastern governments restock air defenses. Readers following that side of the market may want to see Kongsberg’s $404 million Marine Corps launcher deal.

The award also arrives as the Pentagon tries to secure a successor to the AMRAAM. Lockheed Martin recently signed an agreement to accelerate AIM-260 missile output, though that weapon is not expected to replace the AIM-120 quickly.

Raytheon’s Position in the Missile Supply Chain

Raytheon is the business of RTX responsible for missiles, air defense and sensors. RTX, headquartered in Arlington, Virginia, reported more than $88 billion in sales for 2025 and employs over 180,000 people worldwide, according to the company.

Solid rocket motors remain among the tightest constraints across the industry, and new suppliers are coming online. Avio, for one, just broke ground on a US motor plant intended to serve tactical missile programs at Raytheon and Lockheed Martin.

Congress still has to appropriate the money behind the ceiling. Until it does, the pace of deliveries will depend on how much of the $20.7 billion is actually funded in each year’s budget.

Sources

• RTX newsroom, “RTX’s Raytheon awarded $20.7 billion multi-year contract for AMRAAM under landmark production agreement” (September 28, 2026)
• Defense News, “Pentagon awards Raytheon up to $20.7 billion to nearly double AMRAAM production” (September 29, 2026)
• Air Force Technology, “Raytheon wins $20.7bn Department of War contract for AMRAAM missiles”
• Breaking Defense, “Raytheon nets potential $20.7 billion AMRAAM deal”