RTX's Raytheon awarded 5-year defense contract worth up to $20.7B
Raytheon, a subsidiary of RTX (RTX), has secured a government contract worth up to $20.7B to significantly increase production of medium-range air missiles.
- The missiles, called Advanced Medium-Range Air-to-Air Missile — or AMRAAM, for short — are radar-guided weapons designed to intercept enemy aircraft. They work at great distances, in all weather conditions, and can be launched from jets or ground-based defense systems (1, 2).
- RTX announced the deal on September 28, 2026. The 5-year contract, with options to extend for another two years, is valued at up to $20.7B (3).
- This is the company's second such deal with the Defense Department. In the earlier arrangement, a production framework announced on February 4, 2026, Raytheon said it would produce at least 1,900 AMRAAM missiles per year (3, 4).
- In 2025, Raytheon nearly doubled the quantity of AMRAAM missiles it produced in 2024. To further increase output, the company says it's investing in its workforce, facilities, supply chain, and more. RTX is also looking into international manufacturing partnerships in order to meet growing demand from the U.S. and its allies (3).
- RTX says AMRAAM missiles are currently used by 44 countries and reports more than 7,000 successful live firings during testing and combat (1, 3).
- Shares of RTX were up 0.85% premarket, as of the time of writing.
Sources & Further Reading
- "AMRAAM Missile." Raytheon. 2026.
- "AIM-120 AMRAAM." Official United States Air Force Website. 2026.
- "RTX's Raytheon awarded $20.7 billion multi-year contract for AMRAAM under landmark production agreement." RTX. September 28, 2026.
- "RTX's Raytheon partners with Department of War on five landmark agreements to expand critical munition production." RTX. February 4, 2026.
