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ANDOVER, Mass. - Raytheon, a business unit of RTX (NYSE: RTX), a prominent player in the Aerospace & Defense industry with a market capitalization of $183.6 billion, has secured a $536 million contract from the U.S. Navy to support the SPY-6 family of radars. This contract is an extension of the previous Integration and Production Support contract and includes the upgrade of Flight IIA destroyers with the SPY-6(V)4 variant. According to InvestingPro analysis, RTX is currently trading near its 52-week high of $138.82, reflecting strong market confidence in the company’s defense contracts.
The company has been designated as the sole source for this contract, which encompasses continued support for the SPY-6 radars through training, engineering services, ship installation, integration and testing, as well as software enhancements aimed at improving radar capabilities. With revenue growth of 15.11% in the last twelve months and total revenue reaching $81.7 billion, RTX continues to demonstrate strong operational performance.
Barbara Borgonovi, president of Naval Power at Raytheon, emphasized the significance of the SPY-6 radar for the U.S. naval fleet, noting its role in defense against evolving threats and its alignment with the U.S. Navy’s long-term technology strategy.
Currently, the SPY-6 radar system is operational on two U.S. Navy ships, with three more ships expected to receive installations and undergo testing within the year. The radar is projected to be deployed on over 60 U.S. Navy ships over the next decade, bolstering defenses against a variety of threats including air, surface, and ballistic.
Completion of the work stipulated by the contract is anticipated by May 2026.
Raytheon, with a heritage spanning over a century, provides a wide array of defense solutions, including integrated air and missile defense, smart weapons, advanced sensors, and radars. RTX, the parent company and the world’s largest aerospace and defense entity, employs more than 185,000 individuals globally and reported sales exceeding $80 billion in 2024. Its headquarters are located in Arlington, Virginia.
This announcement is based on a press release statement.
In other recent news, Raytheon, a segment of RTX, has been awarded a $1.1 billion contract modification from the U.S. Navy. This contract involves producing and delivering AIM-9X tactical missiles, with allocations for the Navy, Air Force, and foreign military sales customers, and is expected to be completed by October 2028. Additionally, Raytheon has secured a $580 million contract for the production of the Next Generation Jammer Mid-Band system, supporting both the U.S. Navy and the Royal Australian Air Force. In another development, Raytheon delivered an upgraded AN/TPY-2 radar to the U.S. Missile Defense Agency, enhancing capabilities against ballistic and hypersonic missile threats. Meanwhile, TD Cowen analysts have raised RTX’s stock price target to $155, maintaining a Buy rating and highlighting potential margin expansion and a favorable valuation. RTX was also mentioned in discussions about the Golden Dome defense program, a $175 billion initiative announced by President Trump, indicating potential involvement in this ambitious project. These developments underscore RTX’s active role in defense contracting and its continued innovation in military technology.
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