As demand for advanced air-to-air munitions among U.S. allies reaches new heights, the Pentagon has awarded Raytheon, a division of RTX Corporation, a $3.5 billion contract — the largest contract ever for the AIM-120 program. This fixed-price award includes production lots 39 and 40 of the AIM-120 Advanced Medium-Range Air-to-Air Missile (AMRAAM), with delivery scheduled for the third quarter of fiscal year 2031.
The scale of this contract is unprecedented, marking a significant moment for air defense readiness for the NATO alliance and beyond. It includes not only mass production of AMRAAM missiles, but also telemetry systems, field and initial spare parts, and extensive engineering support. Recipients include the U.S. Air Force, U.S. Navy, and foreign The FMS program includes 19 international partners – continuing AMRAAM’s role as a cornerstone of the Western air deterrent.
- An AIM-120 AMRAAM air-to-air missile on display at the Steven F. Udvar-Hazy Center at the National Air and Space Museum in Chantilly, Virginia. (Bailon Greyjoy/Wikimedia)
Coalition of Allies
The breadth of FMS recipients demonstrates AMRAAM’s global utility. Partner nations span nearly every area of strategic interest to the U.S., including:
United Kingdom, Germany, Japan, Finland, Poland, Canada, Sweden, Spain, Denmark, Belgium, Hungary, the Netherlands, Australia, Israel, Ukraine, Switzerland, Lithuania, Taiwan, and Kuwait.
Many of these nations are actively seeking to modernize or replenish the missile. Stockpiles are strained due to prolonged support for Ukraine or increased alert levels in disputed territories. This purchase will enable these allies to maintain or expand combat-ready inventories with the most current AMRAAM variants.
- Map of AIM-120 operators in blue (Jurryaany/Wikimedia)
Strategic timing and urgency
The timing of this agreement is not It’s no coincidence. Against a backdrop of global instability – from Eastern Europe to the Taiwan Strait – concerns about the adequacy of existing missile stockpiles have grown rapidly. Allied air forces are increasingly relying on reliable, interoperable systems to meet the challenges posed by allied adversaries. This contract answers that call.
“This landmark contract underscores the enduring relevance of AMRAAM as a frontline air-to-air solution for the U.S. and its allies,” said Paul Ferraro, president of Air Power at Raytheon. “As we continue to modernize and upgrade AMRAAM capabilities, this purchase will ensure both deterrence and interoperability within allied force structures.”
In addition to meeting immediate inventory needs, this contract is a strategic reassurance – signaling that the U.S. and its partners are prepared to meet future threats with continued production capacity and certified systems.
AMRAAM Advantage
First introduced in the early 1990s, the AIM-120 AMRAAM has been a staple of NATO air power due to its active radar homing, fire-and-forge capability, and beyond-visual-range performance. With a proven operational history across numerous platforms and conflicts, it is a trusted weapon system by more than 40 nations.
This latest contract focuses on the production of the AIM-120D-3 and AIM-120C-8 variants, both equipped with Form-Fit-Function Refresh (F3R) hardware. This update not only improves performance but also enables future upgrades through software – ensuring the missiles remain adaptable for years to come.
- An F-35A Lightning II (AF-6), a conventional takeoff and landing variant, launches an AIM-120 AMRAAM during a weapons test at a range off the California coast. The test was conducted from the F-35 Integrated Test Facility at Edwards Air Force Base. (defenseimagery.mil)
Why not JATM?
With the next-generation AIM-260 Joint Advanced Tactical Missile (JATM) under development by Lockheed Martin, questions may arise as to why AMRAAM dominates the purchase. The answer lies in availability, affordability, and integration. While JATM promises long-range engagement and enhanced capabilities, it remains in limited deployment and is designed for high-end U.S. airframes.
In contrast, AMRAAM is battle-tested, cost-effective, and compatible with a wide range of allied fighter jets. The Pentagon’s decision to extend AMRAAM production through 2031 is not only a transition strategy — it also reaffirms its centrality to multinational defense.
Financial Breakdown
Funding for this historic contract is coming from a combination of the U.S. defense budget and foreign partner contributions:
- $621 million in FMS funding
- U.S. Navy: $113 million (FY 2024) and $190 million (FY 2025)
- U.S. Air Force: $1.3 million (FY 2023), $116 million (FY 2024), and $472 million (FY 2025)
- U.S. Air Force funding from the Air Force’s Research and Development and Operations and Maintenance accounts Additional Support
All manufacturing and integration work will be conducted at Raytheon’s facility in Tucson, Arizona, and phased delivery will be extended through September 2031.
More than just numbers
This award is a clear demonstration of strategic continuity. It is a signal that the U.S. and its allies are not merely reactive but proactive in maintaining credible and interoperable air dominance.
By strengthening industrial production lines and expanding allied inventories, this agreement ensures that AMRAAM remains a pillar of collective defense for the next decade – even as new technologies come online.
- A composite image showing an F-16 Fighting Falcon launching an AIM-120 Advanced Medium-Range Air-to-Air Missile (AMRAAM) one after the other. (defenseimagery.mil)
Summary Table
| Item | Details |
|---|---|
| Contract Value | $3.5 billion |
| Award Date | July 31, 2025 |
| Production Lots | 39 & 40 |
| Recipient Nations | 19 countries via FMS |
| Missile Variants | AIM-120D-3 & AIM-120C-8 (F3R hardware) |
| Completion Date | Q3 FY2031 (~September 2031) |
| Strategic Purpose | Replenish allied stocks; maintain capacity |
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FAQs: People Also Ask
The $3.5 billion deal is the largest ever for the AIM-120 program. It shows how the U.S. and allies are preparing for rising tensions in places like Eastern Europe and the Taiwan Strait. As missile stocks dwindle due to the Ukraine war, this deal ensures allies are ready with reliable, combat-proven weapons.
A total of 19 countries are involved, including the UK, Germany, Japan, Poland, Ukraine, Taiwan, and Israel. Many of these countries are either supporting Ukraine or facing security threats in their own regions. This makes AMRAAM a shared defense tool for NATO and beyond.
The AIM-260 JATM is still under development and not widely available. On the other hand, AMRAAM is battle-tested, affordable, and already in service with dozens of allied jets, including the F-16, F-18, and F-35. For countries that need the weapon now, AMRAAM is the only realistic option.
Raytheon will continue to produce and deliver AMRAAM missiles until September 2031. This means that allies will have a steady stream of advanced missiles for about a decade, even as new technologies like JATM emerge. It’s a bridge strategy: keep forces strong today while preparing for the next generation of air warfare.
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