Pentagon awards RTX's Raytheon $20.7 billion AMRAAM contract amid stockpile concerns

The Pentagon has moved to rapidly expand production of one of the US military's key air-to-air missiles, awarding RTX's Raytheon business a provisional multiyear contract worth $20.7 billion for AMRAAM missiles.The move comes as the US seeks to rebuild weapons stocks that have been drawn down by conflicts in the Middle East and Ukraine. Washington has supplied large quantities of weapons to its allies while also using munitions during its own military operations in Iran, putting additional pressure on inventories of air defence and precision-guided weapons.The AMRAAM is used by fighter aircraft to engage enemy planes and is also deployed in NASAMS, a ground-based air defence system used to protect the Washington area. More than a dozen countries, including Ukraine, Oman and Qatar, also operate NASAMS.The proposed deal is part of a wider Pentagon effort this year to persuade defence contractors to increase weapons production more quickly. A similar approach was used for a $58.6 billion Patriot interceptor contract awarded to Lockheed Martin in July, covering procurement through fiscal 2032.However, the full value of the AMRAAM commitment still depends on Congress providing the required funding. Defence industry executives have warned that without those appropriations, contractors may not be able to make large-scale investments in factories, equipment and components.The production deals are part of the Trump administration's broader push to expand US weapons manufacturing and prioritise military production over shareholder returns. If Congress provides the funding, the RTX contract would allow the company to expand its workforce, supply chain and manufacturing capacity as demand from the US military rises.RTX said it had nearly doubled AMRAAM production in 2025 from the previous year. The deal would fall under the Pentagon's "Arsenal of Freedom" initiative, while RTX has set a target of producing at least 1,900 AMRAAM missiles each year.