Raytheon Technologies Wins $125.8M Contract to Support Navy
Raytheon Technologies RTX announced that its unit Raytheon Missiles & Defense has been awarded a $125.8 million contract for the Enterprise Air Surveillance Radar (EASR) low rate initial production (LRIP).The contract is likely to be completed by Jan 2023.
The contract was conferred by the Naval Sea Systems Command, Washington, DC. 76% of the work is expected to be done in Marlborough, 18% in Andover, 5% in Sudbury and 1% in Portsmouth. Per the deal, Raytheon Technologies’ arm will produce six EASR LRIP units, four AN/SPY-6(V) 2 (air and missile defense radar) EASR rotator LRIP units and two AN/SPY-6(V) 3 EASR fixed-faced LRIP units.
The AN/SPY-6(V) 2 EASR rotator LRIP units will be deployed on the USS Bougainville (LHA-8), USS John C. Stennis (CVN-74), USS Richard M. McCool Jr. (LPD-29) and USS Harrisburg (LPD-30) ships. The AN/SPY-6(V) 3 EASR fixed-faced LRIP units will be deployed aboard USS John F. Kennedy (CVN-79) and the first FFG(X).
With escalation of geopolitical tensions globally, developed and developing nations have been promoted to strengthen their defense systems manifold. Following the rapid technological advancements, missile defense steadily emerged as a key catalyst for a nation’s defense strategy.
The United States being the world’s largest weapons supplier and Raytheon Technologies being a prominent U.S. missile maker, the company has been clinching significant contracts for the enhancement of its missile defense systems with latest technologies and providing its end users with complex technical services. The current contract win is a case in point.
Considering the new deal and a few other pacts secured by the company in recent times, we expect Raytheon Missiles and Defense segment to put up a solid top-line performance in the coming days.
The U.S. fiscal 2021 defense budget proposal provisioned $20.3 billion for major war-fighting investments in missile defense. This, in turn, should help Raytheon Technologies snap up more contracts pertaining to missile defense systems and associated services, considering the company’s proven expertise in varied missile systems.
Other major missile defense players, namely Northrop Grumman NOC, Boeing BA and Lockheed Martin LMT are also expected to benefit from the aforementioned budget plan.
Zacks Rank & Price Movement
Raytheon Technologies currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past month, the company has lost 4.4% compared with the industry’s 6.1% decline.
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