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TUCSON, Ariz. - Raytheon, a subsidiary of RTX (NYSE: RTX), has awarded contracts to defense contractors Nammo and Northrop Grumman for the initial development phase of the MK72 solid rocket motor. The contracts are part of Raytheon’s strategy to increase production capacity and diversify its supplier base in response to the rising global demand for defense systems like the Standard Missile. According to InvestingPro data, RTX has demonstrated strong business momentum with revenue growth of 17.2% in the last twelve months.
The awarded contracts will focus on verifying design requirements and specifications, as well as completing a Systems Requirements Review to refine and validate design concepts. This initial phase aims to ensure that Nammo and Northrop Grumman can meet the necessary requirements and production ramp-up before progressing to further development and qualification stages.
Barbara Borgonovi, president of Naval Power at Raytheon, emphasized the importance of these contracts in expanding the solid rocket motor supplier base to reliably meet customer needs. By leveraging the expertise and proven capabilities of both suppliers, Raytheon intends to enhance its ability to deliver defense capabilities more rapidly.
Raytheon, recognized as a prominent provider of defense solutions, has been serving the U.S. government, allies, and partners for over a century. The company specializes in a wide range of defense technologies, including integrated air and missile defense, smart weapons, and advanced sensors.
RTX, the parent company of Raytheon, stands as the world’s largest aerospace and defense company with a global workforce exceeding 185,000 employees. RTX focuses on pushing technological boundaries in aviation, defense systems, and next-generation technology solutions. With 2024 sales reaching $80.7 billion and an EBITDA of $12.8 billion, the company is headquartered in Arlington, Virginia. InvestingPro analysis shows RTX maintains a moderate debt level with a healthy Altman Z-Score of 3.32, indicating strong financial stability.
This development reflects Raytheon’s commitment to addressing supply chain constraints and reducing risks to fulfill the increasing demand for critical defense systems. The information is based on a press release statement from RTX. Despite a recent 11.3% decline in stock price over the past week, InvestingPro analysis suggests the stock is currently in oversold territory, with 12 additional exclusive ProTips available to subscribers. RTX’s comprehensive Pro Research Report, part of InvestingPro’s coverage of 1,400+ US stocks, provides detailed insights into the company’s valuation and growth prospects.
In other recent news, RTX Corp. reported sales exceeding $80 billion in 2024, highlighting the company’s strong financial performance. Meanwhile, Raytheon, a business unit of RTX, secured a follow-on contract with the U.S. Army Futures Command to extend its Rapid Campaign Analysis and Demonstration Environment, reinforcing its strategic defense capabilities. Collins Aerospace, another RTX business unit, announced the full production of its Mounted Assured Positioning, Navigation and Timing Generation II system, which will be integrated into various U.S. military vehicles. Additionally, Collins Aerospace is launching its standalone Airshow™ HD in-flight entertainment system, catering to business aviation with advanced features like 4K resolution and interactive maps.
Baird analyst Peter Arment upgraded RTX’s stock rating from Neutral to Outperform, raising the price target to $160, citing reduced risks associated with GTF engines and anticipated benefits from defense spending initiatives. This upgrade reflects a positive outlook on RTX’s future cash flow and financial performance. In the broader defense sector, the Trump administration is reportedly preparing to relax military equipment export rules, potentially impacting companies like RTX involved in defense exports. These developments underscore RTX’s active engagement in advancing aerospace and defense technologies while navigating regulatory and market dynamics.
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