RTX Corporation (NYSE: RTX) is cementing its dominance in the air-to-air missile market as global demand for the Advanced Medium-Range Air-to-Air Missile surges among U.S. and allied military customers.
The company’s Raytheon business unit has received a multiyear contract valued at up to $20.7 billion for the production of AMRAAM missiles, guidance sections, and related requirements.
The five-year contract, which includes two option years, covers AMRAAM production through June 2033, providing RTX with a long-dated and highly visible revenue stream.
RTX is targeting annual output of at least 1,900 missiles under the agreement, a significant production ramp that reflects both military urgency and industrial ambition.
The company has already invested heavily in expanding AMRAAM production capacity, and nearly doubled output in 2025 compared to the prior year, demonstrating its ability to scale rapidly.
International demand adds another substantial layer to the growth story, with the contract covering Foreign Military Sales to 16 countries including Australia, Canada, Germany, Japan, Poland, Sweden, and the United Kingdom.
AMRAAM is currently deployed across 44 countries and operates on 14 platforms, giving RTX an unusually broad and diversified customer base for a single weapons program.
RTX’s investments in its workforce, supply chain, and manufacturing facilities are expected to allow the company to meet increasing production requirements without significant operational disruption.
Shares of RTX have surged 12.1% over the past year, outperforming an industry benchmark that declined 14.4% over the same period, underscoring investor confidence in the defense giant’s trajectory.
The company’s shares trade at a premium valuation, with its forward 12-month Price/Sales ratio at 2.51x compared with the industry average of 2.19x, reflecting market expectations for sustained earnings growth.
The Zacks Consensus Estimate for RTX’s 2026 and 2027 earnings has moved higher over the past 60 days, and the stock currently carries a Zacks Rank of 2, indicating a Buy recommendation.
Other major defense contractors stand to benefit from the broader trend of rising missile demand, including Lockheed Martin (NYSE: LMT), which produces PAC-3 interceptors and other precision weapons systems for U.S. and allied forces.
Northrop Grumman (NYSE: NOC) is also positioned to capitalize on growing defense budgets through its involvement in advanced guidance systems, propulsion technologies, and next-generation defense electronics programs.
With strong bilateral and multilateral demand driving weapons inventory replenishment across NATO and Indo-Pacific allies, the AMRAAM program is poised to deliver sustained and growing revenue for RTX’s broader missile and defense portfolio.
