Another multibillion-dollar missile production deal is moving forward as the Department of War pushes to rapidly expand the nation’s munitions manufacturing capacity, an effort that includes Raytheon‘s growing missile operations in Huntsville.
Raytheon, an RTX business, has been awarded a contract valued at up to $20.7 billion to accelerate production of the Advanced Medium-Range Air-to-Air Missile, or AMRAAM.
The five-year multiyear contract, with two additional option years, is expected to nearly double AMRAAM production from previous levels and increase annual production to at least 1,900 missiles.
“We are working across the defense industry to ramp production and build the Arsenal of Freedom,” Under Secretary of War for Acquisition and Sustainment Michael P. Duffey said. “This award strengthens our ability to equip the Joint Force and our allies with a proven air-to-air capability, ensuring our warfighters maintain a decisive advantage.”
The AMRAAM agreement is one piece of a much larger production buildup involving Raytheon and the Department of War.
Earlier this year, the two announced five long-term framework agreements to significantly increase production of AMRAAM, Tomahawk cruise missiles, SM-3 Block IB and Block IIA interceptors and SM-6 missiles.
Raytheon said production under those agreements will take place at its facilities in Tucson, Arizona; Huntsville; and Andover, Massachusetts. The company has not specified what portion of the newly awarded AMRAAM contract will be performed in Huntsville.
The Huntsville operation, however, is already undergoing a major expansion aimed at increasing the company’s missile production and integration capacity.
In March, Raytheon completed a $115 million expansion of its Redstone Raytheon Missile Integration Facility. The 26,000-square-foot addition increased the facility’s integration and delivery capacity by more than 50%.
The Redstone facility has operated since 2012 and supports nine variants of the Standard Missile family and other advanced weapon systems. Raytheon said earlier this year that its Alabama workforce had grown to more than 2,200 employees.
The new AMRAAM award follows another major missile production announcement with direct North Alabama ties.
L3Harris Technologies announced a contract valued at more than $6 billion over seven years to significantly expand propulsion production for the Terminal High Altitude Area Defense, or THAAD, system. L3Harris currently manufactures THAAD solid rocket boost motors in Huntsville and Camden, Arkansas.
Both awards are part of the Department of War’s broader effort to increase production of critical missiles and interceptors and provide defense companies with the long-term commitments needed to invest in manufacturing capacity and supply chains.
Raytheon President Phil Jasper said the company has been investing in its workforce, technology, suppliers and facilities to meet increased demand from the U.S. military and allied nations.
AMRAAM is a beyond-visual-range air-to-air missile used by the U.S. Air Force and Navy and more than 40 allied and partner nations. It is integrated on aircraft including the F-15, F-16, F/A-18, F-22 and F-35 and also serves as the primary interceptor for the ground-based NASAMS air defense system.
Raytheon said production of AMRAAM nearly doubled in 2025 compared with 2024. The latest agreement is intended to push production to record levels as the U.S. and its allies work to replenish stockpiles and expand missile inventories.
The $20.7 billion ceiling includes the five-year base contract and two option years.
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