RTX's Raytheon awarded $20.7 billion multi-year contract for AMRAAM under landmark production agreement

The five-year term could be extended by two option years, while the stated contract value is a maximum.

Rhea-AI Summary

Raytheon, an RTX (RTX) business, secured a multiyear AMRAAM missile contract valued at up to $20.7 billion. The Department of War contract has a five-year term and two option years. Raytheon plans to increase AMRAAM production to record levels under its terms.

The award follows an earlier agreement with the department supporting annual production of at least 1,900 AMRAAM missiles. RTX said production nearly doubled in 2025 compared with 2024 as it invested in AMRAAM and other munitions. RTX is also exploring international co-production.

4 points · 1 major

Weighs positiveiHow this balance works

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0 major · 2 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointRaytheon secured a five-year AMRAAM contract valued at up to $20.7 billion. 8.1% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Raytheon plans to increase AMRAAM production to record levels under the contract.
• Moderate pointRTX said production nearly doubled in 2025 compared with 2024.
• Minor pointAn earlier agreement supports annual production of at least 1,900 AMRAAM missiles.

Negative

• Minor pointThe two option years are not part of the contract’s five-year term.
• Minor pointThe up to $20.7 billion contract value is a maximum, not a fixed amount. 8.1% of market cap

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Contract accelerates production ramp as part of Department of War's Arsenal of Freedom

TUCSON, Ariz., Sept. 28, 2026 /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, will accelerate production of AMRAAM® missiles to record-setting levels under the terms of a five-year multi-year contract with two option years valued up to $20.7 billion awarded as part of the Department of War's Arsenal of Freedom.

This contract follows the landmark agreement between Raytheon and the Department of War announced earlier this year, which supports the annual production of at least 1,900 AMRAAM missiles.

"AMRAAM remains the world's most trusted, combat-proven air dominance weapon for the United States and our allies, delivering beyond-visual-range lethality with advanced guidance and electronic protection in contested environments," said Raytheon President Phil Jasper. "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."

RTX has invested heavily in recent years to ramp production of AMRAAM and other critical munitions, nearly doubling production in 2025 compared to 2024. By collaborating closely with hundreds of small and mid-sized suppliers nationwide — and now exploring international co-production — RTX is rapidly scaling output to meet long-term operational requirements.

Now in its fifth generation, AMRAAM operates on 14 platforms and is fielded by 44 countries, achieving more than 7,000 successful live fires in test and combat. Upgraded with advanced processors that allow for agile software updates to outpace current and future threats, it serves as the primary interceptor for both air-to-air missions and the NASAMS® air defense system.

About Raytheon
Raytheon, an RTX business, is a leading provider of defense solutions to help the U.S. government, our allies and partners defend their national sovereignty and ensure their security. For more than 100 years, Raytheon has developed new technologies and enhanced existing capabilities in integrated air and missile defense, smart weapons, missiles, advanced sensors and radars, interceptors, space-based systems, hypersonics and missile defense across land, air, sea and space.

About RTX
With more than 180,000 global employees, we push the limits of technology and science to redefine how we connect and protect our world. With industry-leading capabilities, we advance aviation, engineer integrated defense systems for operational success, and develop next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2025 sales of more than $88 billion, is headquartered in Arlington, Virginia.

For questions or to schedule an interview, please contact corporatepr@rtx.com.

 

View original content:https://www.prnewswire.com/news-releases/rtxs-raytheon-awarded-20-7-billion-multi-year-contract-for-amraam-under-landmark-production-agreement-302891969.html

SOURCE RTX

FAQ

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How long is RTX's Raytheon AMRAAM contract, and how much is it worth?

Raytheon’s AMRAAM contract has a five-year term, two option years and a value of up to $20.7 billion.