In recent years, and especially since the war in Ukraine began, the AIM-120 AMRAAM air-to-air missile, produced by Raytheon—a subsidiary of RTX—has become a key military export. In March, the U.S. government approved a sale of 400 units of the missile to the United Arab Emirates for $1.22 billion. This follows a period of scrutiny for Raytheon, which faced criticism from former President Donald Trump in January for not meeting Pentagon needs due to limited production capacity. Trump warned that Raytheon would not be allowed to conduct new share buybacks until it improved its responsiveness to defense requirements.
Pete Hegseth, then Secretary of War, echoed this concern, emphasizing the need to support companies that prioritize military readiness and workforce development over financial maneuvers like share buybacks or executive compensation. In response, Raytheon signed framework agreements in February to boost production. The company was also awarded a $22.9 billion contract to deliver up to 1,000 cruise missiles annually to the U.S. Navy over seven years. On September 28, Raytheon announced a new $20.7 billion contract from the Pentagon to increase the annual production of AIM-120 AMRAAM missiles to at least 1,900 units by 2031, or possibly 2033.
According to Raytheon CEO Phil Jasper, the AMRAAM missile is a critical asset for U.S. and allied forces, offering long-range precision and advanced electronic protection in complex combat scenarios. The company stated it is investing heavily in its workforce, technology, and infrastructure to meet growing demand from the U.S. Air Force, Navy, and international partners. However, the press release does not specify which versions of the missile are included in the contract.
The latest versions of the AIM-120 AMRAAM, the AIM-120C8 and AIM-120D3, were developed under the F3R program, which ensures compatibility and performance improvements over earlier models. The AIM-120D3, in particular, is noted for its extended range—up to 160 kilometers or more—and enhanced resistance to electronic jamming, making it more effective in modern warfare scenarios.
U.S. Awards Raytheon Contracts to Expand Production of AIM-120 AMRAAM Missiles
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