Raytheon Wins $20.7 Billion Multi-Year AMRAAM Production Contract

Raytheon, an RTX business, has been awarded a five-year multi-year contract with two option years valued up to $20.7 billion for AMRAAM missiles, RTX announced on September 28, 2026. Under the terms of the contract, awarded as part of the Department of War’s Arsenal of Freedom, Raytheon will accelerate production of the missiles to what the company described as record-setting levels.

The contract follows the landmark agreement between Raytheon and the Department of War announced earlier in 2026, which supports the annual production of at least 1,900 AMRAAM missiles.

“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,” Raytheon President Phil Jasper said in the announcement. “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.”

RTX said it has invested heavily in recent years to ramp production of AMRAAM and other critical munitions, nearly doubling production in 2025 compared with 2024. The company said it is collaborating closely with hundreds of small and mid-sized suppliers across the United States and is now exploring international co-production as it scales output to meet long-term operational requirements.

According to the company, AMRAAM is now in its fifth generation, operates on 14 platforms and is fielded by 44 countries, with more than 7,000 successful live fires in test and combat. RTX said the missile is upgraded with advanced processors that allow for agile software updates to outpace current and future threats, and that it serves as the primary interceptor for both air-to-air missions and the NASAMS air defense system.

February Framework Agreements

The September 28 award builds on five landmark framework agreements Raytheon entered into with the U.S. Department of War on February 4, 2026. Those agreements cover Land Attack and Maritime Strike variants of the Tomahawk cruise missile, AMRAAM missiles, Standard Missile-3 Block IB interceptors, Standard Missile-3 Block IIA interceptors and the Standard Missile-6.

The up-to-seven-year agreements established frameworks to build on the company’s previous investments in production expansion as global demand for the precision munitions grows. Under the frameworks, RTX will increase annual production of Tomahawks to more than 1,000, AMRAAMs to at least 1,900 and SM-6 to more than 500, while also increasing production of the SM-3 IIA and accelerating production of the SM-3 IB. The company said at the time that many of these munitions will grow to two to four times their existing production rates, and that it would continue investing in technology, facilities and its workforce to reach and sustain what it called a historically high production rate.

Production under the framework agreements will be completed at Raytheon facilities in Tucson, Arizona; Huntsville, Alabama; and Andover, Massachusetts. RTX said the long-term agreements incorporate a collaborative funding approach designed to preserve upfront free cash flow, allowing it to invest to meet long-term demand, and that the company investments associated with the agreements were contemplated in RTX’s announced financial outlook for 2026.

RTX CEO and Chairman Chris Calio said the agreements “redefine how government and industry can partner to speed the delivery of critical technologies” and are a direct result of the administration’s Acquisition Transformation Strategy.

The February announcement also detailed the munitions covered by the frameworks. RTX described the Tomahawk as a precision weapon launched from ships and submarines that can strike targets from 1,000 miles away, flight tested more than 550 times and used in an operational environment more than 2,300 times. The SM-3 IB is an exo-atmospheric interceptor for short- to intermediate-range ballistic missiles that was first used in combat in April 2024, according to the company, and the SM-3 IIA was created in a cooperative development program between the U.S. Missile Defense Agency, the Japan Ministry of Defense and their industry partners. The SM-6 supports anti-air warfare, anti-surface warfare and sea-based terminal ballistic missile defense in one weapon, the company said.

AMRAAM Program Record

In the February release, RTX described AMRAAM as the world’s most widely deployed air-to-air missile and said Raytheon has produced the fifth-generation variant since 2024, featuring advanced guidance, software-defined capabilities and enhanced electronic protection for highly contested combat environments. The company said the missile is in service with more than 40 allies and partners, is integrated across fourth- and fifth-generation aircraft and serves as the primary interceptor for NASAMS, supporting both air-to-air and ground-based air defense. Its performance has been proven through more than 6,000 test shots and 13 air-to-air combat victories, according to the February announcement.