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RTX's Arm Announces Upgrades for Beechcraft King Air & Hawker Aircraft

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RTX Corporation’s (RTX - Free Report) unit, Collins Aerospace, recently announced a comprehensive avionics upgrade and modernization program for Beechcraft King Air and Hawker aircraft. The program will enhance performance, safety and cockpit technology to reduce pilot workload and improve efficiency.

Details of RTX’s Program

The program includes upgrading Pro Line 21-equipped King Air 200 and 300 series aircraft to Pro Line Fusion, along with system enhancements for factory-installed Pro Line Fusion models of the same series. It also offers modernization upgrades for Pro Line 21 systems in King Air 200 and 300 aircraft. Additionally, Hawker 750, 800 and 900 series aircraft will receive Pro Line 21 updates to improve safety, expand capabilities and meet modern airspace requirements.

More on RTX’s Pro Line Fusion Integrated Avionics System

Pro Line Fusion integrated avionics system is designed to improve safety, efficiency and pilot experience in modern aviation. It provides advanced situational awareness and intuitive controls, like touch-screen displays and real-time weather detection, to help pilots make quick and accurate decisions. Its flexible and scalable architecture works for a wide range of aircraft and missions, making it reliable for business, commercial and military use.  Connecting cockpit systems with mobile apps and ground-based services reduces workload and ensures smoother and more predictable flights.

RTX’s Growth Prospects

Rising military conflicts, terrorism and border disputes have driven nations across the globe to focus more on national security, particularly in strengthening Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) capabilities, backed by the growing demand for advanced technologies like network-based battle control, unmanned vehicles and advanced sensor technologies as well as the rising complexity of warfares.

This is likely to have prompted Mordor Intelligence to forecast a compound annual growth rate of 3.2% for the global C4ISR market during the 2024-2029 time period.

This is likely to benefit RTX, a prominent forerunner in C4ISR technologies. The company focuses on providing integrated avionics solutions for civil as well as military aircraft. For instance, apart from its Pro Line Fusion integrated avionics system, RTX’s market-proven Avionics Management System for the Sikorsky S-92 multi-mission helicopter features high-resolution multi-function displays easily viewable in all light conditions, with extensive configurability to support surveillance and situational awareness systems. Its Collins unit also offers a market-leading suite of communication and navigation products like VHF transceivers, VOR/ILS/Marker Beacon receivers and many more.

Prospects for Other Defense Stocks

Other defense companies that are likely to enjoy the perks of the expanding C4ISR market have been discussed below.

Lockheed Martin Corporation (LMT - Free Report) : The company provides advanced systems for surveillance, reconnaissance and battle management. One of its key programs includes the Command Control Battle Management Communications, which is the first battle management system capable of integrating across domains.
 
LMT’s long-term (three to five years) earnings growth rate is 4.5%. The Zacks Consensus Estimate for LMT’s 2024 sales indicates year-over-year growth of 5.5%.

General Dynamics Corporation (GD - Free Report) : The company offers advanced communication systems, command and control solutions and ISR platforms that support military forces worldwide. Notably, its subsidiary in Canada offers the Land C4ISR system to the nation’s armed forces to coordinate and conduct modern operations.
 
GD’s long-term earnings growth rate is 11.7%. The Zacks Consensus Estimate for GD’s 2024 sales indicates year-over-year growth of 13.2%.

Northrop Grumman Corporation (NOC - Free Report) : The company has been delivering end-to-end communications and advanced networking capabilities for the United States and allied military forces operating across multiple battlespace domains. Notably, its autonomous high-altitude, long-endurance systems offer unrivaled situational awareness over land and maritime domains.

NOC’s long-term earnings growth rate is 19.1%. The Zacks Consensus Estimate for NOC’s 2024 sales indicates year-over-year growth of 5.3%.

RTX Stock’s Price Movement

Shares of RTX have gained 13.3% in the past six months against the industry’s 0.9% decline.

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RTX’s Zacks Rank

RTX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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