Raytheon, the RTX Corporation subsidiary with a major El Segundo campus, landed a contract worth up to $20.7 billion to produce air-to-air missiles for the U.S. military and allied nations.

The Department of War announced the deal on Monday, Sept. 28. The five-year contract, with two option years, covers production of the Advanced Medium-Range Air-to-Air Missile, known as AMRAAM. The award was formally signed on Friday, Sept. 25.

The $20.7 billion figure is a ceiling, not a guaranteed total. Congress has not yet funded the full deal, and Defense News reported that defense industry executives have warned contractors may hold off on large factory investments until lawmakers act.

The previous record AMRAAM contract was $3.5 billion, awarded in July 2025, according to Defense News.

The contract is part of the Department of War's "Arsenal of Freedom" initiative, which aims to rebuild munitions stockpiles drawn down by the war with Iran, Defense News reported. It covers a joint buy by the U.S. Air Force, the Navy and foreign military sales allies.

Raytheon President Phil Jasper said in a company statement that the company continues to make "significant investments in our workforce, technology, supply chain and facilities to rapidly scale production capacity."

AMRAAM missiles are produced at Raytheon facilities in Tucson, Ariz.; Huntsville, Ala.; and Andover, Mass. But RTX maintains a large footprint in El Segundo, where its Space and Airborne Systems division occupies a million-square-foot building.

The campus focuses on radar, sensors, satellites and electronic warfare. The Center for Land Use Interpretation has described it as Raytheon's largest development site for space-based sensor systems.

RTX, headquartered in Arlington, Va., reported 2025 sales exceeding $88 billion and employs more than 180,000 people worldwide. The company said it nearly doubled AMRAAM production in 2025 compared to 2024.

In February, Raytheon and the Department of War signed five framework agreements setting long-term production targets. Under those deals, announced Feb. 4, 2026, RTX committed to raising annual AMRAAM output to at least 1,900 missiles.

Under Secretary of Defense for Acquisition and Sustainment Michael Duffey said in a statement that the award strengthens the military's ability to equip U.S. and allied forces with a proven air-to-air weapon.

Neither the Department of War nor RTX specified how many missiles the new contract will purchase or the annual production rate it targets. Full funding depends on future Congressional appropriations.