The U.S. signs a $20.7 billion contract with Raytheon to produce AMRAAM missiles

AMRAAM guided missile manufacturing process

The Pentagon has awarded Raytheon, an RTX business, a multiyear contract worth up to $20.7 billion to increase production of AMRAAM missiles. The agreement covers a five-year term with two additional options.

The contract is intended to accelerate the increase in AMRAAM production as the United States seeks to replenish its weapons stocks. According to RTX, the company nearly doubled AMRAAM production in 2025 compared with the previous year.

Under the agreement, annual AMRAAM production is planned to reach at least 1,900 missiles. The deal is part of the “Arsenal of Freedom” initiative, aimed at increasing production of critical munitions.

AMRAAM is used as an air-to-air missile as well as the primary interceptor in the NASAMS surface-to-air missile system. The system is used by the United States and more than a dozen other countries, including Ukraine, Oman and Qatar.

RTX also said the new contract includes significant investments in production capacity, its workforce and supply chains. The company is also working with hundreds of small and medium-sized suppliers to increase missile production.

Full implementation of the multiyear agreement depends on funding that must be approved by the U.S. Congress.