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Can Rising AMRAAM Demand Support RTX's Defense Growth Outlook?
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Key Takeaways
RTX secured an AMRAAM contract worth up to $20.7B, covering production through June 2033.
RTX targets at least 1,900 AMRAAMs annually after nearly doubling production output in 2025.
Foreign Military Sales span 16 countries, while AMRAAM is deployed across 44 countries on 14 platforms.
RTX Corporation (RTX - Free Report) is strengthening its position in the air-to-air missile market as demand for Advanced Medium-Range Air-to-Air Missiles (AMRAAM) continues to rise among the U.S. military and international customers. Its Raytheon business recently received a multiyear contract valued at up to $20.7 billion for the production of AMRAAM, guidance sections and related requirements.
The five-year contract, which includes two option years, covers AMRAAM production through June 2033. The award is expected to support a significant increase in production, with RTX targeting annual output of at least 1,900 missiles. The company has already invested in expanding AMRAAM production capacity and nearly doubled output in 2025 from the previous year.
International demand is another key growth driver. The contract includes 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 a broad customer base for the missile.
The award also strengthens RTX’s long-term defense production pipeline. Rising demand for air-to-air missiles, along with efforts by the United States and its allies to expand weapons inventories, should support higher production volumes. RTX’s investments in its workforce, supply chain and manufacturing facilities are expected to help meet these requirements.
With strong U.S. and international demand, the AMRAAM program could provide RTX with sustained revenue opportunities while supporting growth in its broader missile and defense portfolio.
Defense Stocks to Keep on the Radar
Growing demand for advanced missiles and replenishment of defense inventories could also benefit other major defense contractors with established weapons portfolios.
Lockheed Martin (LMT - Free Report) : Lockheed Martin benefits from demand for air and missile defense systems, including PAC-3 interceptors and other precision weapons. Rising U.S. and allied requirements for advanced missile defense capabilities could support continued orders across its portfolio.
Northrop Grumman (NOC - Free Report) : Northrop Grumman supports missile programs through advanced guidance, propulsion and defense electronics. Its involvement in strategic and tactical missile programs positions the company to benefit from continued investment in precision weapons and next-generation defense technologies.
The Zacks Rundown for RTX
Shares of RTX have surged 12.1% in the past year against the industry’s 14.4% decline.
Image Source: Zacks Investment Research
The company’s shares are trading at a premium on a relative basis, with its forward 12-month Price/Sales being 2.51X compared with its industry’s average of 2.19X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RTX’s 2026 and 2027 earnings has moved north over the past 60 days.
Image Source: Zacks Investment Research
RTX stock currently carries a Zacks Rank #2 (Buy).
View the Zacks #1 Rank List
Image: Bigstock
Can Rising AMRAAM Demand Support RTX's Defense Growth Outlook?
Key Takeaways
RTX Corporation (RTX - Free Report) is strengthening its position in the air-to-air missile market as demand for Advanced Medium-Range Air-to-Air Missiles (AMRAAM) continues to rise among the U.S. military and international customers. Its Raytheon business recently received a multiyear contract valued at up to $20.7 billion for the production of AMRAAM, guidance sections and related requirements.
The five-year contract, which includes two option years, covers AMRAAM production through June 2033. The award is expected to support a significant increase in production, with RTX targeting annual output of at least 1,900 missiles. The company has already invested in expanding AMRAAM production capacity and nearly doubled output in 2025 from the previous year.
International demand is another key growth driver. The contract includes 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 a broad customer base for the missile.
The award also strengthens RTX’s long-term defense production pipeline. Rising demand for air-to-air missiles, along with efforts by the United States and its allies to expand weapons inventories, should support higher production volumes. RTX’s investments in its workforce, supply chain and manufacturing facilities are expected to help meet these requirements.
With strong U.S. and international demand, the AMRAAM program could provide RTX with sustained revenue opportunities while supporting growth in its broader missile and defense portfolio.
Defense Stocks to Keep on the Radar
Growing demand for advanced missiles and replenishment of defense inventories could also benefit other major defense contractors with established weapons portfolios.
Lockheed Martin (LMT - Free Report) : Lockheed Martin benefits from demand for air and missile defense systems, including PAC-3 interceptors and other precision weapons. Rising U.S. and allied requirements for advanced missile defense capabilities could support continued orders across its portfolio.
Northrop Grumman (NOC - Free Report) : Northrop Grumman supports missile programs through advanced guidance, propulsion and defense electronics. Its involvement in strategic and tactical missile programs positions the company to benefit from continued investment in precision weapons and next-generation defense technologies.
The Zacks Rundown for RTX
Shares of RTX have surged 12.1% in the past year against the industry’s 14.4% decline.
Image Source: Zacks Investment Research
The company’s shares are trading at a premium on a relative basis, with its forward 12-month Price/Sales being 2.51X compared with its industry’s average of 2.19X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RTX’s 2026 and 2027 earnings has moved north over the past 60 days.
Image Source: Zacks Investment Research
RTX stock currently carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.