RTX Corporation (RTX) is cementing its dominance in the air-to-air missile market as global demand for the Advanced Medium-Range Air-to-Air Missile continues to surge.
The company’s Raytheon business recently secured a multiyear contract valued at up to $20.7 billion for AMRAAM production, 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 and stable revenue runway.
RTX is targeting annual output of at least 1,900 missiles under the new deal, a significant production ramp from prior levels.
The company has already invested heavily in expanding its AMRAAM production capacity and nearly doubled output in 2025 compared to the previous year.
International demand is a major growth driver, 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 exceptionally broad and diversified global customer base.
Rising pressure on the United States and its allies to expand weapons inventories is expected to drive continued demand for high-volume missile production across the defense sector.
RTX’s investments in its workforce, supply chain, and manufacturing facilities should position it well to meet escalating production requirements as international orders grow.
Other major defense contractors stand to benefit from the same demand trends driving RTX’s missile business expansion.
Lockheed Martin (LMT) benefits from demand for air and missile defense systems, including PAC-3 interceptors and other precision weapons, which could support continued order flow.
Northrop Grumman (NOC) supports missile programs through advanced guidance, propulsion, and defense electronics, positioning it to benefit from continued investment in next-generation defense technologies.
From a market performance standpoint, shares of RTX have surged 12.1% in the past year, even as the broader industry declined 14.4% over the same period.
RTX shares are currently trading at a premium on a relative basis, with its forward 12-month Price/Sales ratio at 2.51X compared to the industry average of 2.19X.
The Zacks Consensus Estimate for RTX’s 2026 and 2027 earnings has moved higher over the past 60 days, reflecting growing analyst confidence in the company’s defense outlook.
RTX stock currently carries a Zacks Rank #2 (Buy), suggesting analysts see continued upside potential as AMRAAM production scales and international demand accelerates.
