The US Department of Defense has awarded Raytheon a contract worth up to $20.7 billion to manufacture Advanced Medium-Range Air-to-Air Missiles (AMRAAM) for American armed forces and allied nations, in what officials describe as a landmark step toward expanding domestic weapons production capacity. The contract was awarded on 25 September 2026 and publicly announced three days later.

Key Details of the Contract

The agreement runs for five years, with options to extend by two additional years. The $20.7 billion figure represents the maximum stated value of the contract — not funds already disbursed. The deal is structured as a joint investment involving the US Air Force, the US Navy, and allied countries purchasing missiles through the Foreign Military Sales (FMS) programme.

Raytheon noted the contract follows an earlier agreement supporting annual production of at least 1,900 AMRAAMs — a baseline production target. The company did not specify the total number of missiles to be delivered under the new award, nor did it provide a delivery timetable.

What the Pentagon Said

Michael P. Duffey, the Under Secretary of Defense for Acquisition and Sustainment, said the contract is part of a broader industry-wide push. 'We are working across the defense industry to ramp production and build the Arsenal of Freedom,' Duffey said. He added that the 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.'

The Pentagon also acknowledged Congress for providing multiyear procurement authority for AMRAAM, and indicated that further authority and additional funding would be sought to give manufacturers greater planning certainty — though specific figures were not disclosed.

Production Ramp-Up and Workforce Expansion

According to RTX, Raytheon's parent company, AMRAAM production in 2025 was nearly twice that of 2024. The Pentagon separately noted that production had 'nearly doubled' compared with previous levels. However, neither the department nor the company stated the absolute number of missiles produced in either year.

Raytheon President Phil Jasper said the company is scaling up on multiple fronts. '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,' Jasper said. RTX added that hundreds of small and mid-sized US suppliers are involved in the expansion, and that the company is exploring overseas production partnerships, though no country or partner was named.

Why AMRAAM Matters Beyond Air Combat

AMRAAM is currently fielded by 44 countries and operates across 14 platforms. Beyond its primary air-to-air combat role, the missile also serves as an interceptor within the ground-based NASAMS air defence system — a configuration that has become notably relevant given ongoing conflict zones where NASAMS batteries have been deployed by allied nations. The US Navy describes AMRAAM as a radar-guided, solid-fuel missile; Raytheon says its newer generation features updated guidance systems and software capabilities.

Broader Strategic Context

This contract comes amid sustained global pressure on Western defence manufacturers to replenish stockpiles drawn down by military aid programmes. The scale of the award — and the explicit reference to the 'Arsenal of Freedom' framing — signals that the Pentagon is treating AMRAAM production as a long-term strategic priority rather than a reactive procurement exercise. Analysts have repeatedly noted that Western air-to-air missile inventories have tightened considerably since 2022, making production velocity a front-line issue for allied deterrence planning.