Raytheon awarded $71 million in Navy contracts for missile systems
COLORADO SPRINGS - Collins Aerospace, a unit of RTX (NYSE: RTX), has secured a contract to supply the U.S. Air Force with 144 ACES II® ejection seats for its F-15EX aircraft, as announced on February 25, 2025. RTX, currently trading near $125 per share with a market capitalization of $167 billion, has demonstrated strong momentum with a 42% return over the past year. According to InvestingPro analysis, the company currently appears to be trading near its Fair Value. The ACES II® ejection seat, part of Collins’ Advanced Concept Ejection Seat series, is designed to enhance aircrew safety and has been credited with saving over 700 lives since its introduction in 1978.
The F-15EX, described as the most advanced version of the Eagle fighter jet, will be equipped with these ejection seats, which are touted for their advanced safety features. Sharon Tabori, vice president and general manager of Integrated Mission Solutions at Collins Aerospace, stated that the ACES II ejection seat is the safest option available, instilling confidence in aircrew for mission success. As a prominent player in the Aerospace & Defense industry, RTX maintains a solid financial foundation with moderate debt levels and has consistently paid dividends for 55 consecutive years.
The contract signifies continued collaboration between Boeing (NYSE:BA) Defense and Collins Aerospace, with the latter’s ejection seats currently in service across a range of U.S. Air Force aircraft, including the A-10, F-15, F-16, F-22, B-1, and B-2, as well as international F-15s and F-16s.
The work to fulfill this contract will be carried out in Colorado Springs, Colorado, where Collins Aerospace is based. The company is recognized as a leading provider of integrated and intelligent solutions for the aerospace and defense sectors, employing 80,000 individuals dedicated to advancing various aspects of aviation technology and safety.
RTX, the parent company of Collins Aerospace, stands as the world’s largest aerospace and defense company, with more than 185,000 employees globally. It reported sales of $80.7 billion in 2024, representing a 17% year-over-year growth, and is headquartered in Arlington, Virginia. InvestingPro subscribers have access to detailed financial analysis, including 10 additional ProTips and comprehensive valuation metrics through the Pro Research Report, offering deeper insights into RTX’s market position and growth potential.
This contract award is based on a press release statement and reflects Collins Aerospace’s ongoing commitment to enhancing the safety and capabilities of the U.S. Air Force’s fleet.
In other recent news, RTX Corp has been upgraded by UBS from Neutral to Buy, with the price target adjusted to $147. UBS analyst Gavin Parsons (NYSE:PSN) highlighted the company’s strong positioning in commercial original equipment and aftermarket strength, along with robust international defense demand. UBS expects a significant increase in earnings per share for RTX Corp, projecting a 5% rise in 2026 and an 11% increase in 2027. Additionally, Pratt & Whitney, a division of RTX, secured a $1.5 billion contract to support the F119 engines for the U.S. Air Force’s F-22 Raptor jets. This contract aims to enhance readiness and reduce maintenance costs for over 400 engines.
In other developments, Raytheon (NYSE:RTN), another unit of RTX, completed 10 successful subsystem demonstrations for the U.S. Army’s Next-Generation Short-Range Interceptor program. These tests are crucial for replacing the current Stinger missile system. Meanwhile, major defense contractors, including RTX, are facing concerns over potential defense budget cuts following a report that the Trump administration plans to reduce the Pentagon’s budget by 8% annually over the next five years. This news has raised questions about future revenue streams for defense companies heavily reliant on government contracts. Additionally, U.S. President Donald Trump has proposed a conference with Russia and China to discuss defense spending and denuclearization, indicating potential shifts in U.S. defense policy.
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