US Awards Raytheon AMRAAM Missile Contract Worth Up to $20.7 Billion

The United States has awarded Raytheon a contract worth up to $20.7 billion to produce AMRAAM missiles for American and allied forces, establishing a long-term framework to expand manufacturing capacity.

The contract, awarded on September 25 and announced three days later, covers five years with options for an additional two. Officials clarified that the stated value represents the maximum potential size of the agreement rather than money being spent immediately.

The US Department of War described the arrangement as a joint investment involving the Air Force, Navy and international partners purchasing weapons through the Foreign Military Sales programme.

Production Expansion Gains Momentum

The agreement supports increased output of the Advanced Medium-Range Air-to-Air Missile, or AMRAAM, as Raytheon expands its workforce, supplier network and manufacturing facilities.

“We are working across the defence industry to ramp production and build the Arsenal of Freedom,” said Michael P. Duffey, under secretary of war for acquisition and sustainment.

“This award strengthens our ability to equip the Joint Force and our allies with a proven air-to-air capability, ensuring our warfighters maintain a decisive advantage,” he added.

Raytheon’s parent company, RTX, said AMRAAM production in 2025 approached twice the volume recorded in 2024. It did not disclose the number of missiles manufactured in either year.

The new contract builds on an earlier agreement targeting annual production of at least 1,900 AMRAAM missiles. That output target is separate from the latest contract’s financial ceiling. Raytheon did not announce a delivery total or a specific fulfilment schedule for the new award.

Longer Commitments for Manufacturers

The department credited Congress with granting multiyear procurement authority for AMRAAM. Officials said further funding and legislative authorisations would help sustain production and provide manufacturers with greater long-term stability, although no specific funding requests were detailed.

Raytheon President Phil Jasper said the company was investing across its operations to meet demand.

“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 US Air Force, Navy and our international partners,” he said.

According to RTX, hundreds of small and medium-sized US businesses are involved in the supply chain expansion. The company is also assessing opportunities for international co-production but has not identified prospective countries or partners.

One Missile, Multiple Roles

AMRAAM is deployed across 44 countries and integrated into 14 platforms, according to RTX.

Alongside its air-to-air combat role, the missile serves as an interceptor in ground-based NASAMS air defence systems. Its production therefore supports requirements across both combat aviation and ground-based air defence.

The US Navy describes AMRAAM as a radar-guided, solid-propellant air-to-air missile. Raytheon says newer versions incorporate improved guidance systems and software upgrades.

With inputs from ANI