Raytheon Secures $3.5 Billion Deal for AMRAAM Missiles, Largest Contract In History

Raytheon, a business under RTX, has been awarded a $3.5 billion contract by the U.S. Department of Defense to produce the Advanced Medium-Range Air-to-Air Missile (AMRAAM) — the largest contract in the program’s history, and a major milestone in one of the world’s most widely used air-to-air missile systems.

The contract, formally listed as an Indefinite-Delivery, Indefinite-Quantity (IDIQ) agreement, allows for flexibility in procurement and spans production and delivery for both U.S. military services and international customers under the Foreign Military Sales (FMS) program. This structure means the actual number of missiles and timeline will vary based on specific orders placed under the agreement.

The deal includes AMRAAM missile purchases for a number of allied countries, including Japan, Canada, Germany, the United Kingdom, and Ukraine, reflecting the system’s widespread global use and importance to collective defense. The agreement covers lot 37 and lot 38 missile production, and includes missiles for the U.S. Air Force, U.S. Navy, and foreign allies.

Under this contract, Raytheon will also deliver training equipment, spare parts, missile containers, and technical support — ensuring that the missiles can be maintained, integrated, and deployed effectively by partner nations. The work will primarily be carried out at Raytheon's facility in Tucson, Arizona, and is expected to be completed by January 31, 2027.

This deal follows a previous $1.15 billion AMRAAM production contract in 2023, and signals a ramp-up in manufacturing to meet global demand. The U.S. Department of Defense emphasized that procurement under this award supports NATO allies and other friendly nations, especially those in regions experiencing rising security threats.

AMRAAM, often called the “fire-and-forget” missile, uses active radar guidance, enabling the launch aircraft to disengage immediately after firing. Its high kill probability and beyond-visual-range (BVR) engagement capabilities make it a cornerstone of modern air superiority.

Currently, the missile is used on advanced platforms including the F-15, F-16, F/A-18, F-22, F-35, and NATO’s Eurofighter Typhoon, and it's also integrated into ground-based air defense systems like NASAMS (National Advanced Surface-to-Air Missile System) — the same system that has been deployed in Ukraine for defense against Russian aerial attacks.

According to Sam Deneke, president of Air & Space Defense Systems at Raytheon, “This award underscores the critical role that the fifth-generation AMRAAM plays in maintaining air superiority and will ensure service members have the advanced technology needed to stay ahead of adversary threats.”

As geopolitical tensions continue to rise, particularly in Europe and the Indo-Pacific, AMRAAM’s proven reliability, ease of integration, and interoperability among allied forces make it a highly strategic asset. With this deal, Raytheon is positioned to support U.S. and allied air dominance well into the future.