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Breaking News: US Concludes Largest AIM-120 AMRAAM Contract to Date to Reinforce Air-to-Air Defense Posture.
Amid rising global tensions and growing demand for advanced weapon systems, Raytheon, a division of RTX (Raytheon Technologies Corp.), has secured the largest contract in the history of the AIM-120 AMRAAM (Advanced Medium Range Air-to-Air Missile) program. Awarded by the U.S. Department of Defense on July 31, 2025, the $3.5 billion agreement covers production lots 39 and 40 and represents a new step in the U.S. strategy to enhance both its own and allied air superiority capabilities.
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The U.S. Air Force has used the AIM-120 for decades as the standard air-to-air missile across its fleet, from legacy fighters to fifth-generation aircraft (Picture source: US DoD)
The contract, structured as a firm fixed-price incentive agreement, does not specify the exact number of missiles to be delivered, although unit costs can exceed one million dollars depending on the variant. It includes production of AMRAAM missiles, telemetry systems, spare parts, and technical support. A substantial portion is allocated to Foreign Military Sales (FMS), benefiting 19 partner nations including the United Kingdom, Germany, Japan, Finland, Poland, Canada, Israel, Ukraine, Australia, Sweden, the Netherlands, and Taiwan. All manufacturing will take place in Tucson, Arizona, with completion expected by the third quarter of fiscal year 2031.
Funding for the contract draws from a combination of budget allocations across multiple fiscal years: procurement accounts from the Navy and Air Force, research and development budgets, operations and maintenance funds, as well as FMS contributions, amounting to over $621 million obligated at contract award. The contract was issued through a non-competitive process. Management oversight is being handled by the Air Dominance Division of the Air Force Life Cycle Management Center, based at Eglin Air Force Base in Florida.
This announcement follows a previous FMS contract awarded to Raytheon less than a year earlier, valued at $1.2 billion. In a statement, Sam Deneke, president of Raytheon's Air and Space Defense Systems, noted that recent conflicts have reaffirmed the operational relevance of the AMRAAM and the need to equip allied forces with systems capable of countering evolving air threats.
First fielded in the early 1990s, the AIM-120 has become a central component of beyond-visual-range (BVR) air combat. It has achieved over a dozen confirmed air-to-air kills in operational theaters ranging from Iraq and Syria to the Balkans and South Asia. The missile is compatible with a broad array of Western platforms, including the F-15, F-16, F/A-18, F-22, F-35, AV-8B, Eurofighter Typhoon, Gripen, and Tornado, and is currently in service with more than 40 countries. Equipped with an active radar seeker and inertial guidance with mid-course updates, the AMRAAM offers fire-and-forget capability. Its variants can reach speeds of up to Mach 4 and engage targets beyond 160 km. It is also integrated into surface-based air defense systems, notably the NASAMS, which is deployed for the protection of Washington, D.C., as well as several allied capitals and Ukrainian airspace.
The missile is powered by a solid-fuel rocket motor and carries a 20 kg fragmentation warhead. It is maneuverable up to 40G, making it effective against fast, agile, and low-observable targets. The U.S. Air Force has used it for decades as the standard air-to-air missile across its fleet, from legacy fighters to fifth-generation aircraft. Few missiles match its combination of maneuverability, cross-platform compatibility, and effectiveness against a broad spectrum of threats, including drones and cruise missiles. The AMRAAM-ER variant, adapted for extended-range ground-based air defense, further expands its operational utility.
Since its introduction, the missile has undergone continuous upgrades. It evolved from the original A and B models to the more capable C and D variants. The C-5 introduced High Off-Boresight (HOBS) capability. Subsequent versions, such as the C-7 and the export-oriented C-8, first flight-tested in 2023, incorporated improved electronics, enhanced range, and digital upgrades under the Form, Fit, Function Refresh (F3R) modernization initiative. This effort updated the missile’s processors and circuit boards to support future software enhancements.
The D-3 variant, in service since 2015, offers a 50% range increase over the C-7, along with improved aerodynamic performance. RTX officials have indicated that it could be fielded alongside the classified AIM-260 JATM (Joint Advanced Tactical Missile), which is still under development. Additionally, procurement documents published in April 2025 suggest that an AIM-120E version may also be under consideration, though it has not been officially confirmed.
Renewed interest in the AMRAAM comes at a time when Western stockpiles are under strain. The missile has been widely used in recent operations against Houthi drones, during air defense operations in Israel, and in Ukraine, where it has been deployed both through NASAMS and newly delivered F-16s. The growing demand for interceptors reflects evolving aerial threats, including mass-produced loitering munitions, cruise missiles, and the increasing risk of high-intensity state-on-state conflict. Recent policy shifts, such as the authorization of AMRAAM deliveries to Egypt, previously restricted to preserve Israel’s qualitative edge, signal a change in U.S. arms transfer policy.
This record-breaking contract reflects a dual imperative: replenishing depleted inventories and preparing for potential future conflict in a volatile strategic landscape. Supply chain constraints and long production lead times, coupled with decades of underinvestment in missile production capacity, complicate efforts to rapidly scale output. While the current round of large-scale contracts addresses urgent operational needs, they are unlikely to resolve short-term readiness challenges.
The $3.5 billion contract awarded to Raytheon underscores the enduring operational relevance of the AMRAAM and the urgency with which the United States and its allies are seeking to reinforce their air-to-air defense capabilities. Despite its age, the missile remains integral to Western air defense, owing to its adaptability, integration across modern platforms, and continued upgrades. As the AIM-260 JATM advances through development, the AMRAAM continues to serve as the primary air-to-air missile in both tactical and strategic applications.