Pentagon Awards Raytheon $20.7 Billion Provisional Deal to Boost AMRAAM Output

The Pentagon has awarded RTX's Raytheon a provisional multiyear contract valued at $20.7 billion to speed up production of AMRAAM missiles, as the US military seeks to replenish inventories drawn down by conflicts in the Middle East and Ukraine.

Washington has supplied significant quantities of weapons to allies while also expending munitions in its own operations, including in Iran, raising concerns about stockpiles of critical air-defense and precision-guided weapons.

The AMRAAM is employed in air-to-air combat between fighter jets and also arms the National Advanced Surface-to-Air Missile System (NASAMS), which defends the Washington area and is operated by more than a dozen countries, among them Ukraine, Oman and Qatar.

The prospective deal is the latest in a string of large munitions contracts the Pentagon has pursued this year to push contractors toward faster output. It mirrors a $58.6 billion Patriot interceptor agreement awarded to Lockheed Martin in July, a seven-year procurement plan running through fiscal 2032.

As with that contract, industry executives have warned that Congress has not yet appropriated the funds required to support the full multiyear commitment, which could prevent contractors from making large-scale investments in components and facilities until lawmakers act.

The production agreements are intended to encourage contractors to accelerate output, part of a broader effort by the Trump administration to prioritize weapons manufacturing over shareholder returns. If Congress ultimately appropriates the money, the contract would allow RTX to keep investing in its workforce, supply chain and facilities as US demand rises.

RTX said it nearly doubled AMRAAM production in 2025 compared with the previous year. The deal would fall under the Pentagon's "Arsenal of Freedom" initiative. RTX said earlier this year it would set an annual production target of at least 1,900 AMRAAM missiles.