The U.S. Department of Defense has awarded Raytheon, a division of RTX, a multiyear contract worth up to $20.7 billion to accelerate production of AIM-120 Advanced Medium Range Air-to-Air Missiles (AMRAAM).
The agreement is designed to increase AMRAAM production and replenish missile inventories as the United States and its allies face growing demand for air-to-air and air-defense systems.
Under the agreement, Raytheon is expected to increase annual AMRAAM production to at least 1,900 missiles, significantly raising output from previous production levels. The contract covers an initial five-year period, with options that could extend it by another two years.
AMRAAM Production to Increase
AMRAAM is one of the U.S. military’s primary medium-range air-to-air missiles. It is used by fighter aircraft and is also deployed as an interceptor in the NASAMS air-defense system.
The missile is operated by the United States and numerous allied countries, making increased production important not only for U.S. inventories but also for international customers.
Raytheon has already been expanding its AMRAAM manufacturing capacity. The company has said it nearly doubled production in 2025 and is investing in its workforce, suppliers, facilities and manufacturing technology to support higher production rates.
Contract Comes Amid Rising Missile Demand
The multiyear agreement comes as the United States seeks to strengthen its stocks of air-defense and precision-guided weapons following deliveries of weapons to allies and the use of munitions in recent conflicts.
The Pentagon’s longer-term production approach is intended to provide defense manufacturers and their suppliers with greater certainty, allowing them to invest in additional manufacturing capacity and supply-chain resources.
The contract also reflects continued international demand for AMRAAM. Raytheon says the missile is used by 44 countries and across 14 different platforms.
$20.7 Billion Is the Maximum Contract Value
Although the contract is valued at up to $20.7 billion, the full amount does not represent an immediate payment to Raytheon.
The total value depends on future orders and funding, including congressional appropriations. The multiyear structure instead provides a framework for continued AMRAAM procurement and expanded production over several years.
The Pentagon’s decision gives Raytheon greater visibility into future demand while supporting efforts to increase the U.S. defense industrial base’s capacity to manufacture air-defense and air-to-air weapons.
What Happens Next
Raytheon will continue expanding production capacity to meet the higher annual target, while the Pentagon and Congress work through future procurement funding.
The increased output is expected to support U.S. military requirements as well as demand from allied and partner nations using AMRAAM-equipped aircraft and air-defense systems.
The agreement represents one of the largest recent commitments to AMRAAM production and is part of a broader U.S. effort to expand weapons manufacturing capacity and rebuild inventories.
