Raytheon secures $205 million contract for Phalanx weapon system

Published 08/09/2025, 13:36
Raytheon secures $205 million contract for Phalanx weapon system

LOUISVILLE - Raytheon, an RTX (NYSE:RTX) business, has been awarded a $205 million contract from the U.S. Navy to continue production of the Phalanx Close-In Weapon System (CIWS), according to a company press release issued Monday. The contract adds to RTX’s robust $83.6 billion revenue stream, with the company maintaining its position as a prominent player in the Aerospace & Defense sector. According to InvestingPro analysis, RTX’s stock has delivered an impressive 38% return year-to-date.

The contract covers upgrades, conversions, overhauls, and related equipment for the Phalanx system, which serves as a defensive weapon on naval vessels. Work will be performed in Louisville, Kentucky, and other U.S. locations through 2029.

The Phalanx is a rapid-fire, computer-controlled, radar-guided gun system designed to counter anti-ship missiles and other close-range threats that might penetrate other defense layers. The system is currently installed on all U.S. Navy surface combatant ship classes and on vessels of 24 allied nations.

In January 2024, the system was used by the USS Gravely to intercept a Houthi missile in the Red Sea shortly before impact.

"Phalanx is our Navy’s last line of defense, expertly designed to protect our sailors from the threats they face every day," said Barbara Borgonovi, president of Naval Power at Raytheon, in the statement.

Raytheon, a subsidiary of RTX, develops technologies for integrated air and missile defense, smart weapons, missiles, sensors, radars, interceptors, space-based systems, and hypersonics.

In other recent news, Raytheon Technologies has secured several significant contracts from the U.S. Department of Defense. Notably, Raytheon Missiles and Defense was awarded a $380 million contract modification for the Medium Range Intercept Capability production, increasing the total contract value to over $412 million. Additionally, the company received a $95.7 million contract modification for Tomahawk missile antenna kits, which includes providing 382 navigation and communications antenna hardware kits. Another contract, valued at $71 million, was awarded for missile system work, with a substantial portion dedicated to engineering work for a redesigned Digital Scene Matching Area Correlator for Navy and Foreign Military Sales customers.

In other developments, Collins Aerospace, a business under RTX, has begun providing JetBlue with its FlightAware Foresight technology, a predictive analytics tool aimed at identifying potential flight delays. Furthermore, Velo3D, in collaboration with RTX and the Raytheon Technologies Research Center, is participating in a U.S. Army-funded initiative to enhance aluminum manufacturing for defense applications. This partnership focuses on developing a laser powder bed fusion process to support the U.S. Army’s modernization priorities. These recent developments highlight Raytheon Technologies’ continued involvement in defense and aerospace advancements.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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