The Pentagon Awards Raytheon a $20.7 Billion Contract for the Production of AMRAAM Missiles

The U.S. Department of Defense, known as the Pentagon, has awarded Raytheon, a subsidiary of RTX, a multi-year interim contract worth $20.7 billion to accelerate the production of AIM-120 missiles, as part of the U.S. military's efforts to replenish weapon stockpiles depleted due to conflicts in the Middle East and Ukraine.

The United States has supplied its allies with large quantities of weapons, while using munitions in its military operations against Iran, raising concerns about key stockpiles of air defense weapons and precision-guided munitions.

The AIM-120 missile is used in air-to-air combat between fighter jets, as well as within the advanced air defense system NASAMS, which the United States and its allies rely on for air defense missions, and it is used by more than 40 countries and partners across various platforms.

The AIM-120 deal is the latest contract in a series of large munitions contracts that the Pentagon has sought to finalize this year, pressuring contractors to increase production at a faster pace.

The awarding of the contract follows a similar pattern to the $58.6 billion Patriot missile supply deal granted to Lockheed Martin in July, which is a 7-year procurement plan extending through fiscal year 2032.

As with the "Patriot" contract, industry executives have warned that Congress has not yet allocated the necessary funding to fully support the multi-year commitment, meaning that contractors may not be able to invest broadly in components and facilities before lawmakers take the necessary actions.

The production deals aim to urge contractors to move more quickly to increase production, as part of a broader effort by President Donald Trump's administration to prioritize weapons production at the expense of shareholder returns.

If Congress ultimately agrees to allocate the funds, the contract will allow "Raytheon" to continue investing in the workforce, supply chain, and facilities as demand rises in the United States.

The Pentagon urged lawmakers to meet the Trump administration's request for $1.5 trillion in funding to enable the military to replenish its stockpiles of critical interceptors.

The company stated that it has raised the production of "AMRAAM" missiles to nearly double in 2025 compared to the previous year.

The deal will be part of the Pentagon's "Arsenal of Freedom" initiative. Earlier this year, "RTX" had stated that it would set an annual production target of no less than 1,900 "AIM-120" missiles.