Collins Aerospace secures $904M Navy contract

CEDAR RAPIDS, Iowa - Collins Aerospace, a business unit of RTX (NYSE: RTX), has secured a follow-on contract potentially worth $904 million to further develop the U.S. Navy’s Cooperative Engagement Capability (CEC) over the next five years. This contract continues the company’s role as the sole provider of the CEC since 1985, following an initial five-year Design Agent contract. According to InvestingPro data, RTX has demonstrated strong market performance with a 45.83% return over the past year, reflecting investor confidence in its defense contracts and market position.

The CEC is an essential network that links various military platforms and sensors, providing integrated tracking for combat and weapons systems. Under the new contract, Collins Aerospace will enhance the system’s interoperability, coordinate a broader range of weapons and sensors, and integrate new data sources.

Ryan Bunge (NYSE:BG), vice president and general manager for C4I & Autonomy Solutions at Collins Aerospace, stated, "The Cooperative Engagement Capability is a key enabler to support the Navy’s expanding Distributed Maritime Operations." He highlighted the time-tested nature of the solutions Collins has been developing, which enable integrated fire controls across the Joint Services.

The company has a track record of deploying and maintaining CEC across more than 174 platforms for the U.S. Navy, U.S. Marine Corps, and international partners. The contract provides an avenue for Collins Aerospace to significantly influence the CEC mission through future task orders for engineering activities.

RTX, the parent company of Collins Aerospace, is recognized as the world’s largest aerospace and defense company, employing over 185,000 people globally. With sales exceeding $80 billion in 2024, RTX continues to push technological and scientific boundaries in aerospace and defense, including through its other industry-leading businesses, Pratt & Whitney and Raytheon (NYSE:RTN).

This new contract award is expected to bolster Collins Aerospace’s contributions to national defense and the Navy’s operational capabilities. The information for this report is based on a press release statement from RTX.

In other recent news, RTX Corp’s financial outlook has been updated by several analysts, with UBS raising the price target to $142 due to strong demand, and Vertical Research Partners lifting it to $159, maintaining a Buy rating. Citi analyst Jason Gursky also upgraded RTX Corp’s stock rating from Neutral to Buy, projecting the company could generate about $10 billion in free cash flow by 2027.

Meanwhile, RTX Corp has expressed interest in acquiring Boeing Co (NYSE:BA).’s Jeppesen navigation unit, which is up for sale and could fetch a price between $6 billion and $8 billion. The company has also secured a $529 million contract to supply the Netherlands with a Patriot air and missile defense system fire unit.

However, Wizz Air, a client of Pratt & Whitney, a division of RTX Corp, has expressed concerns over ongoing issues with Pratt & Whitney engines, expected to persist for four to five years. These are the recent developments at RTX Corp and Boeing Co.

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