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RTX Secures a $255M Contract to Support Standard Missile Program
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RTX Corp. (RTX - Free Report) recently secured a modification contract involving its Standard Missile. The award has been provided by the Naval Sea Systems Command, Washington, D.C.
Details of the Deal
Valued at $254.5 million, the contract is expected to be completed by September 2029. Per the terms of the deal, RTX will provide depot, intermediate level repair and maintenance for Standard Missile. It will also procure provisioned items and ordered spares, and test equipment for the Standard Missile.
A major portion of work related to this deal will be carried out in Camden, AR.
What’s Favoring RTX Stock?
Nations across the globe are increasingly enhancing their military strength through increased defense spending amid the growing global threat landscape. With missiles constituting a critical portion of a nation’s defense structure, countries aimed at strengthening their borders are investing significantly in missile and missile defense systems. With RTX being a prominent missile manufacturer with a robust global presence, it continues to enjoy a solid order flow for production and associated spare parts supply of its combat proven missiles.
In particular, RTX's Standard Missile (SM) series features two key variants — the SM-2 and SM-6. The SM-2 is widely recognized as the world’s leading surface-to-air defense system, protecting the U.S. Navy from anti-ship missiles and aircraft. Meanwhile, the SM-6 offers broader capabilities, performing anti-air, anti-surface and ballistic missile defense functions.
To date, RTX has supplied more than 12,000 SM-2 missiles to the United States and its allies, along with over 500 SM-6 missiles to the U.S. Navy. These figures highlight the strong market demand for these advanced systems. RTX’s latest contract win further reinforces this demand and is expected to contribute significantly to the company’s revenue growth in the coming quarters, thus solidifying its status as a critical player in the global defense sector.
Growth Prospects for RTX Stock
The global peace index reflects an unstable environment worldwide. The Russia-Ukraine war has been ongoing for more than two years now, in addition to the ongoing hostility in different parts of the Middle East. This has set the stage for the defense sector to witness rising demand for military products, particularly missiles, as nations worldwide strive to protect their borders from unprecedented attacks.
Therefore, the growth prospect for the missile and missile defense systems market remains solid. To this end, the Mordor Intelligence firm projects the market to witness a CAGR of 5% over the 2024-2029 period. Such a solid market growth projection stands to benefit RTX, which enjoys an extensive missile portfolio, including AIM-9X Sidewinder missile, TOW missiles and many more such weapons, apart from the Standard Missile. The company also provides advanced sensors and interceptors to identify, track and defeat threats as part of a layered missile defense.
Opportunities for Peers
Other defense contractors that are likely to benefit from the growth opportunities offered by the missile and missile defense market are as follows:
Northrop Grumman (NOC - Free Report) : Northrop is a prominent developer of missile systems and counter systems, including strategic deterrents, as well as subsystems and components. Its product portfolio includes the Integrated Air and Missile Defense Battle Command System, the Guided Multiple Launch Rocket System propulsion and warhead subsystems, the Hypersonic Attack Cruise Missile, the Advanced Anti-Radiation Guided Missile and a few other combat-proven products that support missile defense systems.
NOC boasts a long-term earnings growth rate of 8.7%. The Zacks Consensus Estimate for Northrop’s 2024 sales indicates an improvement of 5.4% from the 2023 reported figure.
Lockheed Martin (LMT - Free Report) : Lockheed’s Missiles and Fire Control business unit develops, manufactures and supports advanced combat missiles and rockets for military customers, including the U.S. Army, Navy, Air Force, Marine Corps, NASA and dozens of foreign allies. Some of its prominent products are the PAC-3 missile and the Terminal High Altitude Area Defense missile.
LMT boasts a long-term earnings growth rate of 4.7%. The Zacks Consensus Estimate for Lockheed’s 2024 sales indicates an improvement of 5.3% from the 2023 reported figure.
The Boeing Company (BA - Free Report) : Air and missile defense systems built by this jet giant have been protecting the United States and its international partners against threats ranging from intercontinental ballistic missiles to hostile aircraft for nearly 25 years. Boeing’s product portfolio includes the supersonic Bomarc missile, the Thor missile, the AGM-86B/C Air-Launched Cruise Missile and the GAM-77 Hound Dog Missile.
BA boasts a long-term earnings growth rate of 21.3%. The Zacks Consensus Estimate for BA’s third-quarter 2024 sales indicates growth of 10% from the year-ago quarter’s reported figure.
Price Movement
In the past year, shares of RTX have risen 71.1% compared with the industry’s growth of 12.1%.
Image: Bigstock
RTX Secures a $255M Contract to Support Standard Missile Program
RTX Corp. (RTX - Free Report) recently secured a modification contract involving its Standard Missile. The award has been provided by the Naval Sea Systems Command, Washington, D.C.
Details of the Deal
Valued at $254.5 million, the contract is expected to be completed by September 2029. Per the terms of the deal, RTX will provide depot, intermediate level repair and maintenance for Standard Missile. It will also procure provisioned items and ordered spares, and test equipment for the Standard Missile.
A major portion of work related to this deal will be carried out in Camden, AR.
What’s Favoring RTX Stock?
Nations across the globe are increasingly enhancing their military strength through increased defense spending amid the growing global threat landscape. With missiles constituting a critical portion of a nation’s defense structure, countries aimed at strengthening their borders are investing significantly in missile and missile defense systems. With RTX being a prominent missile manufacturer with a robust global presence, it continues to enjoy a solid order flow for production and associated spare parts supply of its combat proven missiles.
In particular, RTX's Standard Missile (SM) series features two key variants — the SM-2 and SM-6. The SM-2 is widely recognized as the world’s leading surface-to-air defense system, protecting the U.S. Navy from anti-ship missiles and aircraft. Meanwhile, the SM-6 offers broader capabilities, performing anti-air, anti-surface and ballistic missile defense functions.
To date, RTX has supplied more than 12,000 SM-2 missiles to the United States and its allies, along with over 500 SM-6 missiles to the U.S. Navy. These figures highlight the strong market demand for these advanced systems. RTX’s latest contract win further reinforces this demand and is expected to contribute significantly to the company’s revenue growth in the coming quarters, thus solidifying its status as a critical player in the global defense sector.
Growth Prospects for RTX Stock
The global peace index reflects an unstable environment worldwide. The Russia-Ukraine war has been ongoing for more than two years now, in addition to the ongoing hostility in different parts of the Middle East. This has set the stage for the defense sector to witness rising demand for military products, particularly missiles, as nations worldwide strive to protect their borders from unprecedented attacks.
Therefore, the growth prospect for the missile and missile defense systems market remains solid. To this end, the Mordor Intelligence firm projects the market to witness a CAGR of 5% over the 2024-2029 period.
Such a solid market growth projection stands to benefit RTX, which enjoys an extensive missile portfolio, including AIM-9X Sidewinder missile, TOW missiles and many more such weapons, apart from the Standard Missile. The company also provides advanced sensors and interceptors to identify, track and defeat threats as part of a layered missile defense.
Opportunities for Peers
Other defense contractors that are likely to benefit from the growth opportunities offered by the missile and missile defense market are as follows:
Northrop Grumman (NOC - Free Report) : Northrop is a prominent developer of missile systems and counter systems, including strategic deterrents, as well as subsystems and components. Its product portfolio includes the Integrated Air and Missile Defense Battle Command System, the Guided Multiple Launch Rocket System propulsion and warhead subsystems, the Hypersonic Attack Cruise Missile, the Advanced Anti-Radiation Guided Missile and a few other combat-proven products that support missile defense systems.
NOC boasts a long-term earnings growth rate of 8.7%. The Zacks Consensus Estimate for Northrop’s 2024 sales indicates an improvement of 5.4% from the 2023 reported figure.
Lockheed Martin (LMT - Free Report) : Lockheed’s Missiles and Fire Control business unit develops, manufactures and supports advanced combat missiles and rockets for military customers, including the U.S. Army, Navy, Air Force, Marine Corps, NASA and dozens of foreign allies. Some of its prominent products are the PAC-3 missile and the Terminal High Altitude Area Defense missile.
LMT boasts a long-term earnings growth rate of 4.7%. The Zacks Consensus Estimate for Lockheed’s 2024 sales indicates an improvement of 5.3% from the 2023 reported figure.
The Boeing Company (BA - Free Report) : Air and missile defense systems built by this jet giant have been protecting the United States and its international partners against threats ranging from intercontinental ballistic missiles to hostile aircraft for nearly 25 years. Boeing’s product portfolio includes the supersonic Bomarc missile, the Thor missile, the AGM-86B/C Air-Launched Cruise Missile and the GAM-77 Hound Dog Missile.
BA boasts a long-term earnings growth rate of 21.3%. The Zacks Consensus Estimate for BA’s third-quarter 2024 sales indicates growth of 10% from the year-ago quarter’s reported figure.
Price Movement
In the past year, shares of RTX have risen 71.1% compared with the industry’s growth of 12.1%.
Zacks Rank
RTX currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.