CVS Group shares surge over 10% after FY25 EBITDA beats estimates
ARLINGTON, Va. - Raytheon, an RTX (NYSE:RTX) business, a prominent player in the Aerospace & Defense industry with a market capitalization of $215 billion, has executed a purchase order with Avio USA worth up to $26 million to continue engineering work on the Mk 104 dual-thrust rocket motor, the companies announced Wednesday. According to InvestingPro data, RTX maintains strong financial health with annual revenues of $83.6 billion.
The funding will support the Critical Design Review phase, procurement of long-lead materials for qualification, and increased production capacity for solid rocket motors used in Raytheon’s Standard Missile franchise.
This agreement comes 13 months after the companies signed an initial contract for preliminary engineering work on the Mk 104. The companies have already completed both System Requirements Review and Preliminary Design Review phases. RTX’s solid execution track record is reflected in its GOOD financial health score from InvestingPro, which analyzes multiple financial metrics.
"This purchase order represents an important step in expanding our supply chain to ensure the resilience and availability of the Mk 104 rocket motor," said Barbara Borgonovi, president of Naval Power at Raytheon.
James Syring, CEO of Avio USA and retired U.S. Navy Vice Admiral, stated that the company looks forward to "advancing the motor through full qualification and into production in the future."
Giulio Ranzo, CEO of Avio SpA, added that Avio will support Avio USA by providing expertise on solid rocket motor engineering, material characterization, testing, sourcing, and motor integration.
The collaboration aims to implement second sourcing for critical materials to enhance production capacity for the Standard Missile franchise, which is used by the United States and its allies.
Raytheon is a provider of defense solutions specializing in integrated air and missile defense, smart weapons, advanced sensors, and other defense technologies. The information in this article is based on a company press release.
In other recent news, Raytheon has secured multiple defense contracts, including a $271 million agreement for the production of the TOW missile system and a $74.25 million contract for radar components and aircraft engine services. The TOW missile contract modification involves the TOW Obsolescence and Safety 2B missile variant, with work to be completed in Tucson, Arizona by 2028. The radar contract involves transmit/receive integrated multichannel modules for the SPY-6 Air and Missile Defense Radar System, with completion expected by September 2028. Additionally, Raytheon introduced its next-generation APG-82(V)X radar system, which features enhanced detection range and improved processing capabilities using gallium nitride technology.
Pratt & Whitney, another RTX business, is accelerating the development of its XA103 engine for the U.S. Air Force’s Next Generation Adaptive Propulsion program by utilizing digital data packages to enhance efficiency and reduce costs. In further developments, Raytheon completed a significant review of its Advanced Electronic Warfare prototype for the U.S. Navy’s F/A-18E/F Super Hornet, validating software development and integration with flight-representative hardware. These developments highlight Raytheon’s continued advancements and achievements in defense technology and innovation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.