U.S. Awards Raytheon $3.5B Contract for AMRAAM Missile Production

The U.S. Department of Defense has awarded Raytheon a $3.5 billion contract for the production of Advanced Medium-Range Air-to-Air Missiles (AMRAAM), marking the largest contract in the program’s history.

The deal includes Production Lots 39 and 40 and covers the manufacture of AMRAAM missiles, telemetry systems, initial and field spares, as well as production engineering support. Work completion is expected by the third quarter of fiscal year 2031.

This contract includes Foreign Military Sales (FMS) to more than 18 countries, including Japan, Canada, Germany, the United Kingdom, Ukraine, Denmark, Belgium, the Netherlands, Finland, Hungary, Spain, Poland, Sweden, Taiwan, Lithuania, Australia, Switzerland, Israel, and Kuwait. Funding from U.S. Navy and Air Force missile procurement budgets, research and development, operations, and maintenance accounts, along with foreign contributions, has been obligated at the time of award.

A separate $1.2 billion AMRAAM production award was made to Raytheon less than a year ago.

The AIM-120 AMRAAM is a beyond-visual-range, all-weather, day-and-night capable air-to-air missile equipped with active radar guidance and is known for its speed of Mach 4+, operational range exceeding 30 miles—with newer variants reaching over 100 miles—and inertial navigation with mid-course updates and active terminal homing. Weighing approximately 335 pounds and measuring 12 feet in length, it is integrated on 14 platforms, including the F-15, F-16, F/A-18, F-22, F-35, Eurofighter Typhoon, and Gripen, and is also deployed in ground-based systems such as NASAMS for surface-to-air operations.

Recent upgrades include the AIM-120D-3 variant, which incorporates hardware and software enhancements for greater resilience, range, and targeting precision, and the AMRAAM-ER, optimized for extended-range engagements from ground-based systems. Future developments will support next-generation fighter compatibility and integration with modern radar systems.

The missile’s performance in active conflict zones, particularly in Ukraine, continues to highlight its strategic role in U.S. and allied defense operations.