Raytheon, an RTX business, has secured a multi-year contract worth up to $20.7 billion to increase production of its Advanced Medium Range Air-to-Air Missile (AMRAAM). The agreement covers an initial five-year period, with two additional option years, and forms part of the US Department of War’s Arsenal of Freedom initiative.
The contract follows an agreement announced earlier in 2026 between Raytheon and the Department of War to support annual production of at least 1,900 AMRAAM missiles. The latest award is intended to accelerate manufacturing capacity to meet demand from the US military and international customers.
“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,” said Phil Jasper, President of Raytheon.
Jasper said the company was investing in its workforce, technology, supply chain and manufacturing facilities to increase output and meet demand from the US Air Force, US Navy and international partners. RTX has increased production of AMRAAM and other critical munitions in recent years. The company said its overall production of these products nearly doubled in 2025 compared with 2024. It is working with hundreds of small and medium-sized suppliers across the United States to expand manufacturing capacity and is also exploring international co-production arrangements.
AMRAAM is in its fifth generation and is deployed on 14 platforms across 44 countries. The missile has recorded more than 7,000 successful live-fire events in testing and combat, according to Raytheon. The weapon is used for beyond-visual-range air-to-air engagements and serves as an interceptor for the National Advanced Surface-to-Air Missile System (NASAMS). Its guidance and electronic protection capabilities are designed to support operations in environments where aircraft and missile systems face advanced threats.
Raytheon said upgrades include advanced processors that support agile software updates, allowing the missile’s capabilities to be adapted as threats evolve. The system is used by the United States and allied armed forces. The new agreement is part of broader efforts to expand the production of defence equipment and improve supply-chain capacity. Increased output will depend on manufacturing expansion, workforce availability and coordination with suppliers.
Raytheon develops defence technologies for the US government and allied customers, including integrated air and missile defence systems, smart weapons, missiles, sensors, radars, interceptors, space-based systems and hypersonic technologies. Its parent company, RTX, employs more than 180,000 people globally and reported sales of more than $88 billion in 2025. Headquartered in Arlington, Virginia, RTX operates across aviation, defence systems and advanced technology manufacturing. The multi-year AMRAAM agreement provides a longer-term framework for Raytheon to scale production and support the operational requirements of US and allied forces.
