IRIA News

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The U.S. Department of Defense has awarded two major defense contracts, totaling nearly $8 billion, to Lockheed Martin and Raytheon, supporting the supply of advanced missile systems to allied nations.

The deals, announced on July 31, 2025, under the Foreign Military Sales (FMS) program, aim to bolster the air and maritime strike capabilities of partner countries amid rising global security tensions.

Lockheed Martin received a contract worth approximately $4.29 billion to manufacture two types of precision-guided cruise missiles: the Joint Air-to-Surface Standoff Missile (JASSM) and the Long-Range Anti-Ship Missile (LRASM). These munitions will be delivered to Finland, Japan, the Netherlands, and Poland as part of their ongoing military modernization efforts.

According to the U.S. Air Force, the production under this agreement will continue through January 31, 2033. The deal marks a significant expansion of allied stockpiles of stand-off and anti-ship weapons, reflecting evolving defense priorities among NATO and Indo-Pacific partners.

Raytheon was awarded a separate contract valued at up to $3.5 billion to produce the Advanced Medium-Range Air-to-Air Missile (AMRAAM), along with supporting systems and services. The deal includes production of AMRAAM telemetry units, spare parts, and associated engineering support.

Countries included in this foreign military sale are Australia, Belgium, Canada, Denmark, Finland, Germany, Hungary, Israel, Japan, Kuwait, Lithuania, the Netherlands, Poland, Spain, Sweden, Switzerland, the United Kingdom, and Ukraine, along with Taiwan. Work under the Raytheon contract is scheduled to be completed by the third quarter of fiscal year 2031.

JASSM: long-range precision strike missile

The AGM-158 JASSM, developed by Lockheed Martin, is a low-observable, subsonic cruise missile designed for use against high-value and well-defended targets. It carries a 454-kilogram blast fragmentation warhead and can strike both stationary and mobile ground targets.

The missile is available in two main variants. The standard version has a range exceeding 370 kilometers, while the extended-range (ER) version can reach distances over 500 nautical miles (or approximately 925 kilometers). JASSM can be deployed from a range of U.S. and allied aircraft, including the B-1B and B-52 bombers, as well as F-15E, F-16, and F/A-18 fighters.

LRASM to counter naval threats

Also derived from the JASSM platform, the AGM-158C LRASM (Long-Range Anti-Ship Missile) is designed to locate and destroy enemy surface ships from extended distances. Like its land-attack counterpart, the LRASM carries a 454-kilogram warhead and travels at subsonic speed. However, it features advanced semi-autonomous guidance, allowing it to independently identify and engage maritime targets.

The LRASM has an estimated range of 200 nautical miles (230 miles or 370 kilometers) and is launched primarily from the U.S. Navy’s F/A-18E/F Super Hornets and Air Force B-1B bombers. Integration efforts with the F-16, F-35B/C, and the P-8 Poseidon maritime patrol aircraft are also underway.

AMRAAM: for air superiority

Raytheon’s AIM-120 AMRAAM remains a cornerstone of allied air-to-air combat capabilities. This active radar-guided missile offers “fire-and-forget” capability, allowing pilots to engage targets without maintaining continuous radar lock, thereby improving survivability and operational flexibility.

Multiple AMRAAM variants are in service. While variants A, B, and C are already widely used, the newer D model and the ground-launched AMRAAM-ER (Extended Range) continue to expand mission sets for both air and surface platforms. Each version features a 40-pound (20-kilogram) blast fragmentation warhead and reaches supersonic speeds.

The missile is integrated with a variety of NATO and allied aircraft, including the F-16, F-35, F-15, and Eurofighter Typhoon. It is also a key component of several ground-based air defense systems.

Strategic implications

The nearly $8 billion in combined contracts underscores Washington’s growing commitment to equipping allies with advanced weaponry as part of a broader deterrence strategy. With tensions high across the Indo-Pacific, Middle East, and Europe, U.S. military planners continue to rely on Foreign Military Sales not only to strengthen allied defense capabilities but also to maintain interoperability with U.S. forces.

Countries like Finland and Poland, both close to Russia, are significantly expanding their long-range strike and air defense arsenals. Meanwhile, Japan’s growing missile procurement reflects its shifting security posture in response to threats from North Korea and China.

Ukraine’s inclusion in the AMRAAM contract also highlights continued Western efforts to sustain Kyiv’s air defense systems amid the ongoing war with Russia.

Lockheed Martin and Raytheon’s newly awarded contracts highlight the evolving dynamics of U.S. security cooperation with allies. As adversarial threats become more complex and regional flashpoints intensify, the demand for precision-guided munitions capable of stand-off and air dominance missions is rising sharply.

The contracts ensure that allied nations will not only maintain robust defensive capabilities but will also remain fully integrated into joint operational frameworks alongside U.S. forces well into the next decade.