US awards $21 billion missile contract to RTX’s Raytheon as it looks to replenish stocks amid ongoing conflict with Iran

The US Department of War has awarded RTX’s Raytheon business a multiyear contract worth up to $20.7 billion to accelerate production of the Advanced Medium-Range Air-to-Air Missile (AMRAAM) on Monday, as Washington seeks to expand output of a key missile used by US and allied forces. Raytheon said the agreement covers five years, with two additional option years, and is intended to raise annual production to at least 1,900 missiles.

The agreement comes as the US works to expand production of critical munitions and replenish stocks following weapons deliveries to allies and the use of munitions in military operations. The AMRAAM deal follows a broader effort to secure longer-term production arrangements with defence companies and expand manufacturing capacity.

Why the US is expanding AMRAAM production

The $20.7 billion figure represents the potential value of the multiyear arrangement and depends on funding. Defence industry executives have cautioned that contractors need congressional appropriations to make major investments in factories, equipment, labour and supply chains.


The Raytheon contract follows an earlier framework agreement announced in February under the Pentagon’s, or Department of War’s, “Arsenal of Freedom” initiative, which sought to increase production of several major munitions. That agreement set an annual target of at least 1,900 AMRAAM missiles. RTX said it had already nearly doubled AMRAAM production in 2025 compared with the previous year and is now expanding its workforce, supply network and manufacturing facilities to support higher output.

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AMRAAM is used for air-to-air and ground-based defence

The AMRAAM, or AIM-120, is a radar-guided tactical air-to-air missile designed for all-weather, beyond-visual-range engagements. It uses inertial guidance during the missile’s flight and active radar guidance during the terminal phase. The US Air Force describes it as an all-weather, beyond-visual-range missile, while Raytheon says the weapon is also designed for surface-launch applications.

In its air-to-air role, the missile can be launched by fighter aircraft against airborne targets. It is also used as the baseline interceptor for NASAMS, the ground-based air defence system. This allows the same missile family to be used in both air-launched and surface-launched roles. Raytheon also offers the AMRAAM-ER, a ground-launched variant designed to provide greater range and higher-altitude interception through a larger rocket motor and changes to its flight-control system.

NASAMS is used by more than a dozen countries, including Ukraine, Oman and Qatar, while Raytheon says AMRAAM itself is fielded by 44 countries and integrated with 14 platforms.

Which aircraft can carry AMRAAM?

AMRAAM has been integrated with a range of US and allied fighter aircraft, including the F-15 Eagle and Strike Eagle, F-16 Fighting Falcon, F/A-18 Super Hornet and F-22 Raptor. It is also integrated with aircraft such as the Eurofighter Typhoon, JAS-39 Gripen, Tornado and Harrier.

Raytheon says the latest AMRAAM version is operational across all F-35 Joint Strike Fighter variants and describes AMRAAM as the only radar-guided air-to-air missile cleared for flight on the F-35.

The current AIM-120D generation includes improvements such as GPS-aided navigation, an enhanced two-way data link, increased kinematic range and improved targeting capabilities, according to US Air Force programme documentation. The AIM-120D-3 is the latest variant identified by the Air Force, with further hardware and software improvements.

AMRAAM specifications and missile characteristics

US Air Force reference material lists the AMRAAM as having a length of 143.9 inches, or about 366 cm, a diameter of 7 inches, a wingspan of 20.7 inches and a launch weight of about 335 pounds, or 151 kg. The same fact sheet gives a range of more than 20 miles, a supersonic speed and a blast-fragmentation warhead. It also identifies its guidance system as active radar for the terminal phase and inertial guidance during the midcourse portion of flight.

The AMRAAM programme became operational in September 1991. Its development involved Hughes Aircraft and Raytheon, with Hughes selected as the original full-scale developer and Raytheon later becoming a production partner.

Production target rises to at least 1,900 missiles a year

Raytheon said the new agreement will take AMRAAM manufacturing to record levels, with production planned at 1,900 missiles or more each year. The company said it is working with hundreds of small and medium-sized suppliers across the US and is also exploring international co-production as it scales up output.

The contract is therefore not simply a purchase of missiles, but part of a broader US effort to build a larger and more sustained industrial base for critical munitions. The scale of the planned production, however, remains tied to the availability of the funding required to support the agreement.