Australia announced a $736 million foreign military sale in August 2026 to acquire AIM-260 Joint Advanced Tactical Missiles. The purchase makes Australia the first country to operate the weapon outside the United States.
What's happening
- Australia will integrate the AIM-260 JATM onto F/A-18F Super Hornets, F-35A Lightning II, and EA-18G Growlers in a phased approach.
- A Royal Australian Air Force F/A-18F Super Hornet demonstrated captive carry of an inert AIM-260 during the Gray Flag 2026 large-force test event at Naval Base Ventura County Point Mugu on September 11, 2026.
- The AIM-260 is being developed and produced by Lockheed Martin as the successor to the AIM-120 Advanced Medium-Range Air-to-Air Missile.
Why it matters
- The sale signals initial production capacity maturity for the AIM-260, expanding the missile's operational footprint beyond U.S. platforms and validating multi-national integration timelines.
- Australia's procurement establishes allied air-to-air combat capability for Indo-Pacific operations and demonstrates demand for the next-generation long-range air-to-air weapon system.
- First foreign military sale of the AIM-260 sets precedent for allied nations and accelerates Lockheed Martin's production commitments across multiple customer platforms.
Going deeper
- The AIM-260 program began no later than 2017, jointly developed by the U.S. Air Force and Navy as a successor platform with greater range than the AIM-120 while maintaining dimensional compatibility.
- The missile is planned for integration on F-22 fighter jets, F/A-18 variants, F-35 Lightning II, and the U.S. Air Force's upcoming unmanned Collaborative Combat Aircraft.
Financial impact
- Lockheed Martin will recognize revenue from the $736 million foreign military sale as delivery occurs, with timing and obligated funds structure not disclosed.
- The procurement demonstrates demand signal for AIM-260 production rates, supporting Lockheed Martin's production roadmap and backlog growth through allied procurement channels.
The fine print
- AIM-260 program details remain highly classified, limiting visibility into production schedules and unit costs.
- Earlier reports indicated AIM-260 production would overtake AIM-120 production by 2026, but recent boosts in AMRAAM production make the status of this goal unclear.