According to a report by The News, new budget requests indicate that the US Air Force and Navy are seeking nearly $1 billion for the 2026 fiscal year, starting October 1, to begin production of this classified missile system.

The Air Force, leading the AIM-260’s development has requested $368 million for its initial production run, with an additional $300million included in its annual “Unfunded Priorities List” submitted to congressional defense committees. The Navy has also requested $301 million for the program.

Analysts at Melius Research estimate that the AIM-260 program could be worth $30 billion, depending on production numbers. This development comes as Lockheed Martin reported $1.6billion charges and a potential $4.6 billion tax liability in a second quarter earnings.

Melius analyst Scott Mikus emphasised the importance of profitable growth for Lockheed Martin’s missiles and a fire control division, noting that limiting future charges on the AIM-260 could be crucial.

Once deployed, the AIM-260 will become the most advanced US air-to-air missile, surpassing the long –standing RTX Inc. AIM-120 AMRAAM, which has been in service since 1993. The Air Force did not disclose specific developments that prompted the decision to move into production.

The need for advanced air-launched weapons was highlighted in May when Pakistani jets used PL-15 missiles to successfully engage in Indian aircraft from over 100 miles away.

Pentagon’s annual report on Chinese military capabilities noted that the PL-17 missile is expected to be operational this year with a range believed to extend to 400km (248 miles).

The AIM-260 is designed to fit within the internal weapon bays of F-22 and F-35 fighters and the Air Force has indicated plans for integration with F-16 and F-15 jets as well.