Raytheon Gets $20.7 Billion Contract to Accelerate AMRAAM Missile Production

Department of War and the Pentagon have awarded a significant contract to RTX's Raytheon division to increase the production of AMRAAM missiles. According to reports from the Wall Street Journal and Reuters, the total value of this agreement is $20.7 billion. This strategic move is designed to accelerate the output of these specific air-to-air missiles. The official contract announcement was listed among the government contracts for September 28, 2026, as detailed by the U.S. Department of War (.gov) portal. Coverage of this development has been widespread across major financial and news outlets.

Bloomberg reports the agreement as a $21 billion deal for air-to-air missile output, while Reuters and the Wall Street Journal specifically cite the $20.7 billion figure. A report from al.com highlights a broader international dimension to the agreement, stating that the missile deal involves 16 different countries. This indicates that the production scale and distribution of the AMRAAM systems extend well beyond domestic United States requirements. The context behind this sudden acceleration in production is tied to current inventory levels. Reuters specifically notes that the Pentagon is awarding this contract amid concerns regarding existing stockpiles. The need to replenish or expand these reserves has driven the urgency of the agreement with RTX.

Because AMRAAM missiles are a primary component of air defense and offensive air capabilities, the scale of the $20.7 billion investment underscores the perceived necessity of maintaining high availability of these munitions for the U.S. and its partners. Moving forward, the primary focus remains on the implementation of this production acceleration. Observers will be tracking how Raytheon manages the increased output requirements mandated by the Pentagon. Given that al.com has identified the involvement of 16 countries, the logistics of distributing these missiles globally will be a key factor. The industry will be monitoring the U.S. Department of War for further contract updates following the September 28 announcements to see if additional funding or production milestones are established for RTX.