Photo: Staff Sgt. Rhonda Brown-Strong, U.S. Air Force (Public domain), via Wikimedia Commons (source)
Raytheon, an RTX (NYSE: RTX) business, received a Pentagon production award capped at $20.7 billion for the AIM-120 Advanced Medium-Range Air-to-Air Missile, the company said in a Monday release. Defense News and Breaking Defense reported the same figures on Tuesday.
Defense News said the department signed the action on Sept. 25 and publicized it Monday with RTX. The structure runs five base years plus two option years. Officials described the buy as part of the Arsenal of Freedom effort to expand U.S. munitions manufacturing and said the award is expected to nearly double AMRAAM factory output versus prior rates.
Acquisition chief Michael Duffey said in a statement carried by both trade outlets that the department is pressing industry to increase production for that arsenal campaign. He said the award helps arm U.S. forces and partners with a proven air-to-air weapon and keep a decisive advantage.
How large a ramp
RTX tied the new vehicle to a framework pact struck earlier this year that backs yearly output of at least 1,900 AMRAAMs. Breaking Defense wrote that Monday's contract essentially funds that target. Public materials from the company and the department did not list how many missiles the $20.7 billion ceiling buys.
Breaking Defense, citing a department contract notice, said customers include the Air Force, the Navy and 16 foreign buyers, and that about $240 million in Air Force and Foreign Military Sales money was put on contract at award. RTX said AMRAAM flies on 14 platforms, is used by 44 countries and is the main interceptor for the National Advanced Surface-to-Air Missile System.
Raytheon President Phil Jasper said in the company statement that Raytheon is still putting money into people, technology, suppliers and plants to "rapidly scale production capacity and meet surging demand" from the Air Force, Navy and overseas partners. RTX said AMRAAM and other munitions output nearly doubled in 2025 versus 2024 and that it is studying co-production abroad.
Defense News noted that the ceiling tops a prior AMRAAM high-water mark: a $3.5 billion award in July 2025 for U.S. and allied customers.
Money still pending
Breaking Defense reported the vehicle is an undefinitized contract action, which lets work begin while price and quantity details are finished. Defense News, citing Reuters, said lawmakers have not yet appropriated the full multiyear sum and that some industry executives expect firms to hold back on large plant and parts bets until Congress funds the commitment. Department statements quoted by the outlets thanked Congress for multiyear AMRAAM authority and asked for more authority and dollars to keep lines running.
What's next
Defense News reported that the department also struck a framework this month with Lockheed Martin to raise output of the AIM-260 Joint Advanced Tactical Missile, a longer-range Air Force and Navy program that is meant to outrange and later succeed AMRAAM. Fiscal 2027 starts Oct. 1; Breaking Defense noted the year is expected to open on a continuing resolution, which can slow large multiyear buys until full appropriations pass.
Sources
- RTX: RTX’s Raytheon awarded $20.7 billion multi-year contract for AMRAAM under landmark production agreement (2026-09-28)
- Defense News: Pentagon awards Raytheon up to $20.7 billion to nearly double AMRAAM production (2026-09-29)
- Breaking Defense: Raytheon nets potential $20.7 billion AMRAAM deal (2026-09-29)
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