Raytheon, an RTX business, has received a five-year contract with two additional option years valued at up to $20.7 billion to accelerate production of Advanced Medium-Range Air-to-Air Missiles, or AMRAAMs.
The contract was awarded as part of the Department of War’s Arsenal of Freedom initiative and follows an earlier production agreement supporting annual output of at least 1,900 AMRAAM missiles.
The agreement gives Raytheon a long-term framework for expanding production of one of the most widely deployed air-to-air weapons used by the United States and allied militaries.
RTX has been increasing investments across its workforce, manufacturing facilities, technology, and supplier network to support growing demand.
The company said it nearly doubled AMRAAM production in 2025 compared with 2024.
Raytheon is working with hundreds of small and midsized suppliers across the United States to increase output and is also evaluating international co-production opportunities.
The production expansion reflects continued demand from the U.S. Air Force, U.S. Navy, and international customers.
AMRAAM is a beyond-visual-range air-to-air missile designed to engage aircraft in contested environments using advanced guidance and electronic protection systems.
Now in its fifth generation, AMRAAM is integrated across 14 platforms and fielded by 44 countries.
The missile has completed more than 7,000 successful live fires in testing and combat.
Raytheon has also upgraded the weapon with advanced processors designed to enable faster software updates as threats and operating environments evolve.
Beyond its air-to-air role, AMRAAM serves as the primary interceptor for the National Advanced Surface-to-Air Missile System, or NASAMS, giving the weapon both airborne and ground-based air defense applications.
The contract provides Raytheon with longer-term production visibility as the company increases manufacturing capacity.
Multi-year procurement agreements can allow defense contractors and suppliers to make longer-term investments in equipment, facilities, inventory, and workforce development because production requirements are established over a longer period.
For RTX, the award adds to a broader effort to expand output of critical munitions and defense systems.
Raytheon develops technologies spanning integrated air and missile defense, precision weapons, missiles, sensors, radars, interceptors, space systems, hypersonics, and missile defense.
RTX generated more than $88 billion in sales in 2025 and employs more than 180,000 people worldwide.
The AMRAAM agreement represents one of Raytheon’s largest long-term production commitments and provides a framework for increasing missile output as the U.S. and allied governments seek to replenish inventories and expand defense capacity.
KEY QUOTE:
“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. We continue to make significant investments in our workforce, technology, supply chain and facilities to rapidly scale production capacity and meet surging demand from the U.S. Air Force, Navy and our international partners.”
Phil Jasper, President Of Raytheon
