Pentagon grants RTX's Raytheon $20.7 billion deal to boost AMRAAM missile output

The Pentagon has issued a provisional multiyear contract to RTX's Raytheon business valued at $20.7 billion, intended to speed up production of the AMRAAM missile amid concerns that U.S. inventories have been depleted by operations in the Middle East and Ukraine. AMRAAM missiles serve both air-to-air fighter missions and the National Advanced Surface-to-Air Missile System that protects the Washington area and is fielded by more than a dozen allies such as Ukraine, Oman and Qatar.

This procurement mirrors a $58.6 billion Patriot interceptor contract awarded to Lockheed Martin earlier this year, reflecting a broader strategy to pressure defense firms into expanding capacity. However, Congress has not yet appropriated the necessary funds, meaning contractors may be unable to invest fully until the budget is approved. The deal aligns with the Trump administration's emphasis on prioritizing weapons production over shareholder returns and is part of the Pentagon's "Arsenal of Freedom" initiative. RTX says it aims to produce at least 1,900 AMRAAMs annually, having nearly doubled output in 2025 compared with the previous year.