TUCSON, Ariz. - The Javelin Joint Venture (JJV), a collaboration between defense contractors Raytheon Technologies (NYSE: NYSE:RTX) and Lockheed Martin (NYSE:LMT), has been awarded two contracts by the U.S. Army, totaling $267 million. The contracts are for the production of Lightweight Command Launch Units (LWCLU) and will support not only the U.S. Army but also the armed forces of Estonia, Latvia, and Lithuania through Foreign Military Sales.
The new LWCLU is a significant advancement in missile technology, boasting a 30% reduction in size and a 25% reduction in weight compared to the current Block I Command Launch Unit. It also offers a doubling of target detection and recognition range. This technology is designed to enhance surveillance and provide both day and night engagement capabilities, while being adaptable to all Javelin missile variants.
Andy Amaro, JJV president and Javelin program director at Raytheon (NYSE:RTN), highlighted the move to full-rate production as a critical step that promises cost efficiencies, reduced risk, and faster delivery times. Dave Pantano, Lockheed Martin Javelin program director and JJV vice president, emphasized the LWCLU's role as a state-of-the-art deterrence solution that enhances mobility and utilizes advanced fire-and-forget technology.
The Javelin system is co-produced by Raytheon in Tucson, Arizona, and Lockheed Martin in Orlando, Florida. To date, the partnership has produced over 50,000 Javelin missiles and more than 12,000 reusable Command Launch Units. The production work under the new contracts is scheduled to take place in Tucson, with completion expected in 2026 and 2028.
The Javelin Joint Venture between Raytheon and Lockheed Martin represents a longstanding collaboration in the development and production of defense technology. This latest contract signifies continued support for U.S. and allied military capabilities, contributing to national and international defense efforts.
The information in this article is based on a press release statement.
In other recent news, Raytheon Technologies Corporation has passed the U.S. Army's counter-drone technology tests, demonstrating the effectiveness of its Ku-band Radio Frequency Sensor and Coyote Block 2 and Block 3 effectors. The company has also secured a $736 million contract from the U.S. Navy for the production of the AIM-9X SIDEWINDER missile's Block II variant. Raytheon emerged as a principal contractor in potential military sales to India, Italy, and Romania, totaling $965 million.
In terms of analyst notes, TD Cowen maintained a Buy rating on Raytheon due to impressive third-quarter defense orders, while Deutsche Bank upgraded the stock from Sell to Hold, anticipating surpassing third-quarter earnings per share.
Among other developments, Raytheon was awarded a contract to develop ultra-wide bandgap semiconductors by the Defense Advanced Research Projects Agency. The company's division, Pratt & Whitney, opened a new $255 million military engine facility in Oklahoma City, and Raytheon was named as the principal contractor in a potential sale of Stinger missiles to Egypt, valued at approximately $740 million. These are among the recent developments in the company's operations.
InvestingPro Insights
The recent $267 million contract awarded to the Javelin Joint Venture aligns with Raytheon Technologies' (NYSE: RTX) strong position in the Aerospace & Defense industry. According to InvestingPro data, RTX boasts a substantial market capitalization of $165.53 billion, underlining its significant presence in the sector.
InvestingPro Tips highlight that RTX has maintained dividend payments for an impressive 54 consecutive years, demonstrating financial stability and commitment to shareholder returns. This consistency is particularly noteworthy in the context of long-term defense contracts like the Javelin project.
The company's revenue growth of 7.68% in the most recent quarter suggests ongoing demand for its products and services, which is likely bolstered by contracts such as the one mentioned in the article. Additionally, RTX's strong return over the last three months, as noted in the InvestingPro Tips, may reflect market confidence in the company's recent contract wins and overall performance.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for Raytheon Technologies, providing deeper insights into the company's financial health and market position.
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