WASHINGTON — The U.S. government has awarded RTX’s Raytheon a multi-year contract worth up to $20.7 billion to produce Advanced Medium-Range Air-to-Air Missiles (AMRAAM) for the United States and allied countries.
The contract was awarded on September 25 and announced on September 28. It covers an initial five-year period with two option years and runs through June 30, 2033. The agreement is part of the U.S. effort to expand domestic munitions production and is expected to increase AMRAAM production to at least 1,900 missiles annually.
The $20.7 billion figure represents the maximum potential value of the agreement over the base period and option years, rather than an immediate payment. The contract covers AMRAAM All Up Rounds, guidance sections, Direct Charge and Foreign Military Sales (FMS) offsets.
At the time of the award, approximately $85,715 in fiscal 2026 U.S. Air Force weapons procurement funds and about $154.3 million in FMS funds had been obligated. Additional funding will be provided as the contract is finalized and future budgets are approved.
Production expansion
The agreement follows a framework deal announced in February 2026, under which Raytheon committed to producing at least 1,900 AMRAAM missiles per year. Raytheon said it nearly doubled AMRAAM production in 2025 compared with 2024 and has invested in its workforce, technology, facilities and supply chain. The company is working with hundreds of small and mid-sized U.S. suppliers and is also exploring international co-production.
Production under the new contract will take place in Tucson, Arizona.
16 foreign customers
The contract also supports Foreign Military Sales to Australia, Belgium, Canada, the Czech Republic, Denmark, Finland, Germany, Italy, Japan, Kuwait, the Netherlands, Norway, Poland, Sweden, Taiwan and the United Kingdom.
AMRAAM is a radar-guided beyond-visual-range air-to-air missile used by fighter aircraft. It is integrated with platforms including the F-15, F-16, F/A-18, F-22 and F-35 and is also the primary interceptor used by the NASAMS air-defense system.
Raytheon says the latest fifth-generation AMRAAM uses upgraded processors that support software updates to address evolving electronic threats. The missile operates on 14 platforms, is fielded by 44 countries, and has recorded more than 7,000 successful live firings in testing and combat.
Under Secretary of War for Acquisition and Sustainment Michael P. Duffey said the award will strengthen the U.S. ability to equip its Joint Force and allies. Raytheon President Phil Jasper said the company will continue expanding production to meet demand from the U.S. Air Force, U.S. Navy and international customers.
The Department of War has described the program as part of its “Arsenal of Freedom” effort to expand the U.S. munitions industrial base and increase production of critical weapons.
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