Stock Markets June 25, 2026 05:29 PM

Raytheon Secures $1.1 Billion Award for AIM-9X Missile Lot Production

DoD contract modification orders Lot 26 missiles and associated equipment; separate $12M JPALS order for Italy announced

By Hana Yamamoto
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Raytheon Co. has received a $1.1 billion modification from the U.S. Department of Defense to exercise Lot 26 production options under an existing fixed-price incentive contract for AIM-9X missiles and related gear. The award encompasses tactical missiles for U.S. services and Foreign Military Sales customers, assigned to multiple production sites and scheduled for completion by September 2029. Separately, Raytheon received a $12 million firm-fixed-price order for a Joint Precision Approach and Landing System for Italy.

Raytheon Secures $1.1 Billion Award for AIM-9X Missile Lot Production
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Key Points

  • The DoD modification is valued at $1.1 billion and exercises Lot 26 options under an existing fixed-price incentive contract for AIM-9X missiles and related equipment.
  • Deliverables include 1,653 AIM-9X-4 Block II tactical missiles, 336 AIM-9X-5 Block II+ tactical missiles for FMS, training missiles, spare parts, and support equipment, serving Navy, Army, Air Force, and FMS customers.
  • Production is concentrated primarily in Tucson, Arizona (36.14%) with additional work across multiple U.S. states and international sites; contract funding spans fiscal 2024-2026 and includes $744.2 million in FMS funds.

Raytheon Co. has been awarded a $1.1 billion contract modification by the U.S. Department of Defense to cover production and delivery of AIM-9X missiles and supporting equipment. The change exercises Lot 26 production options under a fixed-price incentive contract that was previously awarded.

The modification specifies delivery of 1,653 AIM-9X-4 Block II tactical missiles and 336 AIM-9X-5 Block II+ tactical missiles designated for Foreign Military Sales customers. In addition to those tactical missiles, the award includes various training missiles, spare parts, and associated support equipment. The deliveries are intended to serve the Navy, Army, Air Force, and FMS customers.

Work under the contract is scheduled to be completed by September 2029. Primary production is to take place in Tucson, Arizona, which accounts for 36.14% of the work. Other identified work locations and their share of production include North Logan, Utah - 9.96%; Niles, Illinois - 7.83%; and Keyser, West Virginia - 7.65%. Additional work will occur at facilities in Oregon, California, Connecticut, and Minnesota, as well as at international sites in Ontario, Canada and Heilbronn, Germany.

Funding for the contract will be provided through fiscal 2024, 2025, and 2026 appropriations from multiple military branches. The modification includes $744.2 million in Foreign Military Sales funds. Total obligated funds at the time of award amount to $1.27 billion, of which $119.2 million are set to expire at the end of the current fiscal year. Naval Air Systems Command in Patuxent River, Maryland, is listed as the contracting activity.

Separately, Raytheon received a firm-fixed-price order valued at $12 million for one Joint Precision Approach and Landing System for the Government of Italy. That work is slated to be performed in Largo, Florida (30%), Fullerton, California (50%), and Cedar Rapids, Iowa (20%), with an expected completion date in March 2028.


Contract scope and timeline

The Lot 26 modification consolidates a mix of AIM-9X-4 and AIM-9X-5 missiles along with training rounds, spares, and support equipment to meet requirements across U.S. military services and FMS recipients. The multi-year completion target is September 2029, while the Italian JPALS order carries a March 2028 completion date.

Geographic footprint and funding notes

Production will be distributed across a number of U.S. and international sites, with the largest single share of work assigned to Tucson, Arizona. The award draws on appropriations spanning fiscal 2024 through 2026 and includes substantial FMS funding. A portion of obligated funds will expire at the end of the current fiscal year.

Risks

  • A portion of obligated funds - $119.2 million - will expire at the end of the current fiscal year, which could affect near-term financing for contract activities.
  • The contract schedule extends to September 2029, creating a multi-year delivery horizon that may expose the program to timeline risk over that period.
  • Production concentration - with 36.14% of work in Tucson, Arizona - highlights geographic reliance on specific sites for a significant share of manufacturing.

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