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Raytheon (RTX) Wins Deal to Offer Support for CEC Program
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Raytheon Technologies Corporation (RTX - Free Report) recently clinched a modification contract to support the Cooperative Engagement Capability (“CEC”) program. Valued at $27.1 million, the contract is expected to be complete by June 2024.
Details of the Deal
The deal has been awarded by the Naval Sea Systems Command, Washington, D.C. Per the deal, Raytheon will offer Planar Array Antenna Assembly pre-production requirements to support the CEC program. The contract will serve the U.S. government and the government of Canada under the Foreign Military Sales program.
The work involved in the deal will be carried out at multiple locations, with the majority of the work to be conducted in Largo, FL and McKinney, TX.
Significance of CEC
The Navy's CEC program provides a means that enables battle group ships and aircraft to share sensor data at a very high speed, providing the entire battle group with a single integrated air picture. Moreover, this rules out the usage of any additional radars or weapons and shares information with existing systems.
Additionally, CEC boasts features that encourage air contact tracking accuracy, continuity of the track and consistency in air contact identification.
Raytheon's Role in CEC
CEC is a core solution within Raytheon's extensive portfolio of comprehensive, integrated mission capabilities, which enable any naval ship to detect, control and engage any threat, whether from air, surface or undersea. From radars and sonars, navigation, combat management and sensor networking to weapon and missile integration, RTX's platform-and-system-agnostic systems and integration expertise enable the U.S. and coalition navies to confidently, effectively and affordably achieve mission success.
Additionally, Raytheon is a leading contractor for CEC-related radars and equipment for many years and continues to support the program with its efficient antennas and radars, which assist in military surveillance. The latest contract win is a bright example of that.
Growth Prospects
With the rapid escalation of geopolitical tensions globally in recent times, developed and developing nations have been boosting their defense arsenal significantly. Radars constitute a vital part of this arsenal. The demand for radars is poised to rise in the long haul as it eases military surveillance and reconnaissance tasks.
Per projections from the Mordor Intelligence report, the global military radar market is anticipated to expand at a CAGR of 4.5% during the 2022-2031 period. This stands to benefit RTX as it enjoys an established position in the military radar market.
The expanding military radar market bodes well for defense majors like Lockheed Martin (LMT - Free Report) , L3Harris Technologies (LHX - Free Report) and Northrop Grumman (NOC - Free Report) .
Lockheed's product portfolio includes various radar and electro-optical/infrared sensor systems like the AN/APY-9 radar, airborne ground surveillance radar systems, the IRST21 Sensos system, AN/TPQ-53 radar systems, SPY-7, the long-range discrimination radar and a few more.
Lockheed boasts a long-term earnings growth rate of 5.7%. LMT shares have returned 10% in the past year.
L3Harris manufactures combat-proven radars like SPS-48, land-based surveillance radars, the AN/APY-11 Multimode radar, the Tactical Air Surveillance radar, the AN/SPS-48G Long-range 3D surveillance radar and many more.
L3Harris boasts a long-term earnings growth rate of 4.4%. The shares of LHX have appreciated 3.8% in the past year.
Northrop's broad portfolio of products comprises radars like the AN/APG-83 scalable agile beam radar, the AN/ASQ-236 Dragon’s eye radar pod as well as AN/APG-81 and AN/APG-71 for the F-35 and F-22 jets, respectively.
Northrop boasts a long-term earnings growth rate of 6.1%. NOC shares have rallied 29.3% in the past year.
Price Movement
In the past month, Raytheon shares have rallied 11.3% against the industry’s decline of 1.5%.
Image: Bigstock
Raytheon (RTX) Wins Deal to Offer Support for CEC Program
Raytheon Technologies Corporation (RTX - Free Report) recently clinched a modification contract to support the Cooperative Engagement Capability (“CEC”) program. Valued at $27.1 million, the contract is expected to be complete by June 2024.
Details of the Deal
The deal has been awarded by the Naval Sea Systems Command, Washington, D.C. Per the deal, Raytheon will offer Planar Array Antenna Assembly pre-production requirements to support the CEC program. The contract will serve the U.S. government and the government of Canada under the Foreign Military Sales program.
The work involved in the deal will be carried out at multiple locations, with the majority of the work to be conducted in Largo, FL and McKinney, TX.
Significance of CEC
The Navy's CEC program provides a means that enables battle group ships and aircraft to share sensor data at a very high speed, providing the entire battle group with a single integrated air picture. Moreover, this rules out the usage of any additional radars or weapons and shares information with existing systems.
Additionally, CEC boasts features that encourage air contact tracking accuracy, continuity of the track and consistency in air contact identification.
Raytheon's Role in CEC
CEC is a core solution within Raytheon's extensive portfolio of comprehensive, integrated mission capabilities, which enable any naval ship to detect, control and engage any threat, whether from air, surface or undersea. From radars and sonars, navigation, combat management and sensor networking to weapon and missile integration, RTX's platform-and-system-agnostic systems and integration expertise enable the U.S. and coalition navies to confidently, effectively and affordably achieve mission success.
Additionally, Raytheon is a leading contractor for CEC-related radars and equipment for many years and continues to support the program with its efficient antennas and radars, which assist in military surveillance. The latest contract win is a bright example of that.
Growth Prospects
With the rapid escalation of geopolitical tensions globally in recent times, developed and developing nations have been boosting their defense arsenal significantly. Radars constitute a vital part of this arsenal. The demand for radars is poised to rise in the long haul as it eases military surveillance and reconnaissance tasks.
Per projections from the Mordor Intelligence report, the global military radar market is anticipated to expand at a CAGR of 4.5% during the 2022-2031 period. This stands to benefit RTX as it enjoys an established position in the military radar market.
The expanding military radar market bodes well for defense majors like Lockheed Martin (LMT - Free Report) , L3Harris Technologies (LHX - Free Report) and Northrop Grumman (NOC - Free Report) .
Lockheed's product portfolio includes various radar and electro-optical/infrared sensor systems like the AN/APY-9 radar, airborne ground surveillance radar systems, the IRST21 Sensos system, AN/TPQ-53 radar systems, SPY-7, the long-range discrimination radar and a few more.
Lockheed boasts a long-term earnings growth rate of 5.7%. LMT shares have returned 10% in the past year.
L3Harris manufactures combat-proven radars like SPS-48, land-based surveillance radars, the AN/APY-11 Multimode radar, the Tactical Air Surveillance radar, the AN/SPS-48G Long-range 3D surveillance radar and many more.
L3Harris boasts a long-term earnings growth rate of 4.4%. The shares of LHX have appreciated 3.8% in the past year.
Northrop's broad portfolio of products comprises radars like the AN/APG-83 scalable agile beam radar, the AN/ASQ-236 Dragon’s eye radar pod as well as AN/APG-81 and AN/APG-71 for the F-35 and F-22 jets, respectively.
Northrop boasts a long-term earnings growth rate of 6.1%. NOC shares have rallied 29.3% in the past year.
Price Movement
In the past month, Raytheon shares have rallied 11.3% against the industry’s decline of 1.5%.
Image Source: Zacks Investment Research
Zacks Rank
Raytheon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.