Overview

• Raytheon secured a $3.5 billion award for AIM-120 AMRAAM production lots 39 and 40, the largest in the program’s history, encompassing foreign military sales to more than 20 allied nations with work slated through fiscal 2031 and $1.5 billion already obligated.
• Lockheed Martin received a $4.3 billion contract for five JASSM and four LRASM lots supplying the Air Force, Navy and allies including Poland, the Netherlands, Japan and Finland, with $1.4 billion obligated and performance extending into January 2033.
• These awards mark one of the first major applications of the multiyear procurement authority granted in late 2024 to provide industry with a stable demand signal and spur investments in expanded production capacity.
• Senate appropriators labeled the AMRAAM contract delay an “avoidable failure” that missed opportunities to shore up the supply chain and have proposed an additional $1.3 billion for LRASM and $525 million for AMRAAM in the 2026 defense reconciliation package.
• Air Force budget documents show procurement of 734 AMRAAMs in 2025 and a request for 677 in 2026, with industry capable of producing up to 1,200 missiles under the new contracting approach.