Key facts
- The Pentagon awarded RTX's Raytheon business a provisional multiyear contract worth $20.7 billion for AMRAAM missiles.
- The contract aims to accelerate production and replenish US military stockpiles.
- AMRAAM missiles are used in air-to-air jet fighter combat and the National Advanced Surface-to-Air Missile System (NASAMS).
- The US has supplied large quantities of weapons to allies and used munitions in its own military operations, raising concerns about inventories.
- Industry executives caution that Congress has not yet appropriated the full funding for the multiyear commitment.
- RTX said it nearly doubled AMRAAM production in 2025 compared with the prior year.
The Pentagon has awarded RTX's Raytheon business a provisional multiyear contract valued at $20.7 billion to accelerate the production of Advanced Medium-Range Air-to-Air Missiles (AMRAAM). This move is part of an effort to replenish US military stockpiles that have been depleted by ongoing conflicts in the Middle East and Ukraine, as well as by US military operations.
Concerns have been raised about the availability of key air defense and precision-guided weapons due to the significant quantities supplied to allies and used in US operations. The AMRAAM missile is a critical component for air-to-air combat in jet fighters and is also integrated into the National Advanced Surface-to-Air Missile System (NASAMS), which is deployed to defend areas like Washington D.C. and is utilized by over a dozen countries, including Ukraine.
This large munitions contract follows a pattern seen earlier this year, such as a $58.6 billion Patriot interceptor deal awarded to Lockheed Martin. However, industry executives have cautioned that Congress has yet to fully appropriate the necessary funds for these multiyear commitments. This could limit contractors' ability to make large-scale investments in components, supply chains, and facilities until legislative action is taken.
The production agreements are designed to incentivize contractors to increase output more rapidly. RTX has stated that it nearly doubled AMRAAM production in 2025 compared to the previous year and had previously set an annual production goal of at least 1,900 missiles. This initiative is part of the Pentagon's broader "Arsenal of Freedom" strategy.