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Raytheon (RTX) Arm Wins $28.2M Modification Deal for MK-31 RAM
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Raytheon Technologies Corp.’s(RTX - Free Report) arm, Missiles and Defense, recently won a modification contract involving MK-31 Guided Missile program. The deal has been awarded by Naval Sea Systems Command, Washington, D.C.
Details of the Deal
Valued at $28.2 million, the contract is expected to get completed by September 2025. Per the terms, Raytheon will provide design agent and engineering support services for Rolling Airframe Missile (RAM)-upgraded MK-31 Guided Missile Weapon System Improvement Program.
The work related to this deal will be executed in Tucson, AZ.
What’s Favoring Raytheon?
Nations worldwide are strengthening their defense structure in a bid to enhance defense inventories with technologically advanced arms and ammunitions. In this context, missiles and rockets, being integral parts of any warship affair, have witnessed an increased demand and are anticipated to be sought after in the days ahead.
In the light of such factors, RTX’s RAM guided missile weapon system is the world's most modern ship self-defense weapon and is designed to provide exceptional protection for ships of all sizes. Its strong demand can be gauzed by more than 165 ships in 11 countries equipped with it.
The missile is continually improved to stay ahead of the ever-evolving threat of anti-ship missiles, helicopters, aircraft and surface craft. This has resulted in multiple order wins for RTX like the latest one. This should bolster RTX’s revenue generating prospects from Missile line of business.
Peer Moves
Per the report from Markets and Markets firm, the global rockets and missiles market is poised to grow at a CAGR of 4.8% over the 2021-2026 period. The favorable growth prospects in the rocket and missile market tend to benefit RTX and other defense players as well, which are engaged in missile production. Some of them are listed below:
Lockheed Martin(LMT - Free Report) : Its missile defense product range includes Patriot Advanced Capability-3 (PAC-3) and Terminal High Altitude Area Defense air and missile defense programs. It also manufactures Multiple Launch Rocket System, Joint Air-to-Surface Standoff Missile and Javelin tactical missile programs alongside other tactical missiles.
Lockheed boasts a long-term earnings growth rate of 6.2%. Shares of LMT have increased 13.3% in the past year.
Boeing(BA - Free Report) : Its proven portfolio of precision air and missile defense solutions continues to set the industry standard for performance and affordability. Some of its products are Ground-based Midcourse Defense, PAC-3 Missile Seeker, Avenger, etc.
Boeing has a long-term earnings growth rate of 4%. Shares of BA have gained 50.8% in the past year.
Northrop Grumman(NOC - Free Report) : The company develops some of the world’s most advanced missile defense technologies. Its missile defense program includes AGM-88E advanced anti-radiation guided missiles, Ground Based Strategic Deterrent weapon system and rocket propulsion systems.
Northrop’s long-term earnings growth rate is anticipated to be 3.8%. Its shares have improved 1.2% in the past month.
Price Movement
In the past year, shares of Raytheon have increased 7.5% compared with the industry’s growth of 14.1%.
Image Source: Zacks Investment Research
Zacks Rank
Raytheon Technologies currently carries a Zacks Rank #4 (Sell).
Image: Bigstock
Raytheon (RTX) Arm Wins $28.2M Modification Deal for MK-31 RAM
Raytheon Technologies Corp.’s(RTX - Free Report) arm, Missiles and Defense, recently won a modification contract involving MK-31 Guided Missile program. The deal has been awarded by Naval Sea Systems Command, Washington, D.C.
Details of the Deal
Valued at $28.2 million, the contract is expected to get completed by September 2025. Per the terms, Raytheon will provide design agent and engineering support services for Rolling Airframe Missile (RAM)-upgraded MK-31 Guided Missile Weapon System Improvement Program.
The work related to this deal will be executed in Tucson, AZ.
What’s Favoring Raytheon?
Nations worldwide are strengthening their defense structure in a bid to enhance defense inventories with technologically advanced arms and ammunitions. In this context, missiles and rockets, being integral parts of any warship affair, have witnessed an increased demand and are anticipated to be sought after in the days ahead.
In the light of such factors, RTX’s RAM guided missile weapon system is the world's most modern ship self-defense weapon and is designed to provide exceptional protection for ships of all sizes. Its strong demand can be gauzed by more than 165 ships in 11 countries equipped with it.
The missile is continually improved to stay ahead of the ever-evolving threat of anti-ship missiles, helicopters, aircraft and surface craft. This has resulted in multiple order wins for RTX like the latest one. This should bolster RTX’s revenue generating prospects from Missile line of business.
Peer Moves
Per the report from Markets and Markets firm, the global rockets and missiles market is poised to grow at a CAGR of 4.8% over the 2021-2026 period. The favorable growth prospects in the rocket and missile market tend to benefit RTX and other defense players as well, which are engaged in missile production. Some of them are listed below:
Lockheed Martin(LMT - Free Report) : Its missile defense product range includes Patriot Advanced Capability-3 (PAC-3) and Terminal High Altitude Area Defense air and missile defense programs. It also manufactures Multiple Launch Rocket System, Joint Air-to-Surface Standoff Missile and Javelin tactical missile programs alongside other tactical missiles.
Lockheed boasts a long-term earnings growth rate of 6.2%. Shares of LMT have increased 13.3% in the past year.
Boeing(BA - Free Report) : Its proven portfolio of precision air and missile defense solutions continues to set the industry standard for performance and affordability. Some of its products are Ground-based Midcourse Defense, PAC-3 Missile Seeker, Avenger, etc.
Boeing has a long-term earnings growth rate of 4%. Shares of BA have gained 50.8% in the past year.
Northrop Grumman(NOC - Free Report) : The company develops some of the world’s most advanced missile defense technologies. Its missile defense program includes AGM-88E advanced anti-radiation guided missiles, Ground Based Strategic Deterrent weapon system and rocket propulsion systems.
Northrop’s long-term earnings growth rate is anticipated to be 3.8%. Its shares have improved 1.2% in the past month.
Price Movement
In the past year, shares of Raytheon have increased 7.5% compared with the industry’s growth of 14.1%.
Image Source: Zacks Investment Research
Zacks Rank
Raytheon Technologies currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.