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ANDOVER, Mass. - Raytheon, a business segment of RTX (NYSE: RTX), has announced the delivery of the first AN/TPY-2 radar to the U.S. Missile Defense Agency featuring a fully populated Gallium Nitride (GaN) array. The upgraded radar system is designed to enhance the United States’ defensive capabilities against ballistic and hypersonic missile threats. RTX, with a market capitalization of $181 billion and annual revenue exceeding $81 billion, maintains a strong position in the aerospace and defense sector. According to InvestingPro data, the company has demonstrated robust financial performance with a "Fair" overall health score.
The AN/TPY-2 is an X-band radar that plays a crucial role in the detection, tracking, and discrimination of ballistic missiles throughout their flight phases. The inclusion of GaN technology is reported to improve the radar’s sensitivity, which in turn extends its range, increases surveillance capabilities, and bolsters the system’s defense against hypersonic missile threats.
Additionally, this version of the AN/TPY-2 integrates the latest CX6 high-performance computing software, which enhances target discrimination and provides protection against electronic attacks.
Sam Deneke, president of Air and Space Defense Systems at Raytheon, emphasized the radar’s advanced capabilities, stating, "This is the most advanced version of AN/TPY-2 that Raytheon has built, leveraging years of investment and innovation to produce superior capability at a lower cost to the U.S. armed forces." Deneke also noted that the enhanced radar system is poised to meet the increasing demand for missile defense of the U.S. homeland and its allies.
The AN/TPY-2 radar’s operation in the X-band spectrum allows it to more effectively differentiate between actual threats and non-threatening objects, such as debris that may separate from missiles during flight.
Raytheon, as part of RTX, continues to be a prominent player in the defense sector, providing a range of solutions including air and missile defense systems, smart weapons, advanced sensors, and radars. RTX, which reported sales exceeding $80 billion in 2024, remains the world’s largest aerospace and defense company, employing over 185,000 individuals globally. Analysts maintain a positive outlook on RTX, with price targets ranging from $114 to $160 per share. InvestingPro subscribers can access detailed analysis and 10 additional exclusive ProTips about RTX’s market position and growth potential.
The delivery of this radar system represents a significant milestone in the enhancement of missile defense capabilities for the United States. The information for this report is based on a press release statement from Raytheon. RTX’s stock is currently trading near its 52-week high of $136.40, with a year-to-date return of 17.67%. Based on InvestingPro’s Fair Value analysis, the stock appears to be fairly valued. Investors can access comprehensive valuation metrics and a detailed Pro Research Report, available for RTX and 1,400+ other top US stocks through InvestingPro.
In other recent news, RTX Corporation has secured a significant $580 million contract with the U.S. Navy for the production of the Next Generation Jammer Mid-Band system, a key technology for electronic warfare. Additionally, RTX’s subsidiary, Raytheon, has signed a $1 billion deal with Qatar for counter-drone capabilities, marking Qatar as the first international customer for Raytheon’s FS-LIDS system. In a separate development, Benchmark analysts have upgraded RTX Corp’s stock rating from Hold to Buy, setting a new price target of $140. This upgrade is attributed to positive factors in the aerospace and defense sectors, including strong engine and lease rates and improvements in jet engine supply chains.
Furthermore, RTX has announced a 7.9% increase in its quarterly cash dividend, reflecting the company’s confidence in its financial health and long-term cash generation capabilities. The dividend will be 68 cents per share, payable to shareholders on record by May 23, 2025. In technology advancements, Raytheon has successfully integrated its ASTARTE system with military command frameworks during a recent demonstration, enhancing airspace operations and decision-making speed. These developments highlight RTX’s ongoing efforts to expand its defense capabilities and shareholder value.
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