Home Air US awards huge $3.5bn AMRAAM contract with UK among buyers

Precision under pressure: 55th and 79th FGS weapons technicians compete at the 20th Fighter Wing Annual Load Crew Competition — U.S. Air Force Senior Airman Cody Ratchford, 79th Fighter Generation Squadron weapons technician, affixes fins to an AIM-120 advanced medium-range air-to-air missile (AMRAAM) during the 20th Fighter Wing Annual Load Crew Competition at Shaw Air Force Base, S.C., Jan. 17, 2025. Missile fins provide stability and control by generating aerodynamic forces that adjust the missile's attitude and direction, similar to arrow fletching, keeping it on course. (U.S. Air Force photo by Senior Airman Meghan Hutton)

US awards huge $3.5bn AMRAAM contract with UK among buyers

August 5, 2025

The United States Air Force has awarded a contract worth up to $3.5 billion to Raytheon for the continued production of Advanced Medium Range Air-to-Air Missiles (AMRAAM), according to a U.S. Department of Defense announcement.

The deal covers production Lots 39 and 40 and includes missiles, telemetry systems, spares, and engineering support. Work will take place in Tucson, Arizona, with completion expected by the third quarter of fiscal year 2031.

According to the Pentagon, the contract involves Foreign Military Sales to a wide range of allies and partners, including the United Kingdom, Australia, Denmark, Japan, Sweden, Germany, Poland, and Ukraine, among others.

“Raytheon, Division of Raytheon Technologies Corp., Tucson, Arizona, was awarded a not-to-exceed $3,500,000,000 firm-fixed-price incentive, undefinitized contract action for Advanced Medium Range Air-to-Air Missile (AMRAAM) Production Lots 39 and 40. This contract provides for the production of AMRAAM missiles, AMRAAM Telemetry System, initial and field spares, and other production engineering support activities. This contract involves Foreign Military Sales (FMS) to: Denmark, Belgium, Japan, Netherlands, Canada, Finland, Germany, Hungary, Spain, Poland, Sweden, Taiwan, Lithuania, the United Kingdom, Australia, Switzerland, Ukraine, Isreal, and Kuwait.”

The contract was awarded on a sole-source basis, with funds drawn from a variety of US Navy and Air Force procurement and maintenance budgets, alongside over $621 million in foreign funding from participating governments.

The AMRAAM, first fielded in 1991, has become the standard medium-range air-to-air missile for many NATO and allied air forces. It has been used in multiple conflicts including the Gulf War, Kosovo, Syria, Ukraine, and Yemen. Manufactured by Raytheon, the missile has undergone several upgrades, with the current AIM-120D variant offering a range of up to 160 km and speeds exceeding Mach 4.

Guided by a combination of inertial navigation and active radar homing, AMRAAM is designed to operate in all weather and beyond-visual-range engagements. Its electronic architecture also allows mid-course updates from the launch platform. Recent versions incorporate improved seekers, propulsion, and software, enhancing effectiveness in contested environments.

AMRAAM is integrated across a wide array of Western fighter aircraft, including the F-35, F-15, F-16, F/A-18, Typhoon, and Gripen, and is also used in surface-launched air defence systems such as NASAMS.

The missile weighs around 161 kg and carries a 20 kg high-explosive fragmentation warhead. Depending on the variant, its range spans from 75 km to over 150 km.