Pentagon Awards Raytheon $20.7B to Double AMRAAM Output

Key points

• The contract, valued at up to $20.7 billion, is a five-year agreement with two option years, awarded on Sept. 25, 2026.
• It will nearly double AMRAAM production, with RTX targeting at least 1,900 units annually under prior framework agreements.
• The deal is a joint buy for the U.S. Air Force, Navy, and 16 allied nations, including Australia, Germany, and Japan.
• AMRAAM is the world’s most widely deployed air-to-air missile, fielded by 44 countries and serving as the primary interceptor for the NASAMS system.
• Congress has not yet fully funded the deal, with Reuters noting the award is provisional and industry may delay investments until funding is secured.

Background

This award follows a series of framework agreements signed in February 2026, where RTX committed to raising annual output of AMRAAM, Tomahawks, and Standard Missile-6 interceptors. The Pentagon has also begun preparing for AMRAAM’s successor, the AIM-260 Joint Advanced Tactical Missile, through a framework deal with Lockheed Martin. Recent conflicts, including the war with Iran, have drawn down munitions stockpiles, prompting the 'Arsenal of Freedom' campaign to bolster weapons production.

How outlets are covering it

Defense News emphasizes the strategic importance of the deal in rebuilding stockpiles and maintaining a decisive advantage for the Joint Force and allies. RTX highlights the company’s investments in workforce, supply chain, and facilities to meet surging demand, noting that AMRAAM has achieved over 7,000 successful live fires. The U.S. Department of War’s official contract notice confirms the $20.7 billion ceiling and lists 16 foreign military sales partners, underscoring the international scope. However, Reuters, cited by Defense News, raises concerns that the award is provisional, as Congress has not yet provided full funding, which could delay industry investments in parts and factories.

Why it matters

The contract is critical for maintaining U.S. and allied air superiority, as AMRAAM is a proven, combat-tested weapon used by 44 countries. The push to double production reflects the urgency to replenish stockpiles after recent conflicts and to ensure readiness for future threats. However, the provisional nature of the funding highlights the risk of delays in defense industrial capacity if Congress does not act promptly.

What to watch

Congress must approve full funding for the contract to proceed as planned. RTX is expected to continue investing in production capacity and exploring international co-production to meet demand. The Pentagon will also advance development of the AIM-260 missile to eventually replace AMRAAM.