Pentagon Awards $20.7 B Contract to RTX’s Raytheon for AMRAAM Missile Production

On September 28, the Pentagon announced a provisional multiyear contract with RTX’s Raytheon business valued at up to $20.7 billion. The five-year agreement, with two optional extension years, is intended to accelerate production of the Advanced Medium-Range Air-to-Air Missile (AMRAAM) as the U.S. military seeks to replenish stockpiles strained by operations in the Middle East and Ukraine. The award is part of the Department of War’s “Arsenal of Freedom” initiative and follows a similar multiyear procurement pattern used for other large-scale munitions contracts.

ReutersRTX’s Raytheon wins AMRAAM missile contract worth up to $20.7 billion as U.S. targets output of at least 1,900 a year Raytheon wins $20.7 billion contract for missile production RTX's Raytheon awarded $20.7 billion multi-year contract for AMRAAM under landmark production agreement

Recent conflicts have driven high demand for air-defense and precision-guided weapons, prompting the Pentagon to pursue several sizable contracts this year. Earlier in the fiscal year, a $58.6 billion Patriot interceptor contract was awarded to Lockheed Martin for a seven-year period through fiscal 2032. Industry executives have warned that Congress has not yet appropriated the full funding needed for these multiyear commitments, potentially limiting contractors’ ability to invest in expanded facilities and supply-chain capacity.

Reuters

The contract supports an annual production target of at least 1,900 AMRAAM missiles. RTX reported that production nearly doubled in 2025 compared with 2024, reflecting the company’s effort to meet surging demand from the U.S. Air Force, Navy, and international partners. The missile is fielded by 44 countries across 14 platforms and has logged more than 7,000 successful live-fire events in testing and combat. The fifth-generation version incorporates upgraded processors that enable rapid software updates to counter evolving threats.

RTX’s Raytheon wins AMRAAM missile contract worth up to $20.7 billion as U.S. targets output of at least 1,900 a year RTX's Raytheon awarded $20.7 billion multi-year contract for AMRAAM under landmark production agreement Raytheon wins $20.7 billion contract for missile production Reuters

The Pentagon described the award as a means to “accelerate production” and sustain the United States’ air-dominance capabilities. RTX also highlighted collaboration with hundreds of small and midsize U.S. suppliers and exploratory international co-production efforts.

RTX’s Raytheon wins AMRAAM missile contract worth up to $20.7 billion as U.S. targets output of at least 1,900 a year

“AMRAAM remains the world's most trusted, combat-proven air dominance weapon for the United States and our allies, delivering beyond-visual-range lethality with advanced guidance and electronic protection in contested environments,” — Raytheon President Phil Jasper, said raytheon president

RTX's Raytheon awarded $20.7 billion multi-year contract for AMRAAM under landmark production agreement