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MCKINNEY, Texas - Raytheon, a subsidiary of RTX (NYSE: RTX), has secured a $580 million contract from the U.S. Navy for continued production of the Next Generation Jammer Mid-Band (NGJ-MB) system. The defense contractor, currently trading near its 52-week high of $136.17, will supply additional NGJ-MB pod shipsets, including units for the Royal Australian Air Force and associated support equipment and spares.
The NGJ-MB system, mounted on the EA-18G Growler aircraft, is designed to disrupt enemy radar, communications, and other electronic warfare threats. This technology plays a crucial role in safeguarding airborne assets during various missions. According to InvestingPro, RTX stands as a prominent player in the Aerospace & Defense industry, with comprehensive analysis available in their Pro Research Report covering 1,400+ top US stocks.
Barbara Borgonovi, president of Naval Power at Raytheon, emphasized the significance of Electronic Attack capabilities in combat situations, stating it enhances the protection of strike groups and high-value assets across multiple theaters of operation.
The NGJ-MB program is a collaborative effort with the Royal Australian Air Force, featuring active electronically scanned arrays that operate in the mid-band frequency. The system aims to provide a tactical advantage against sophisticated radar and non-traditional RF threats.
Production under this contract will span multiple locations, including Forest, Mississippi; McKinney, Texas; El Segundo, California; and Andover, Massachusetts, with an expected completion by 2028.
Raytheon, with a history of over 100 years in defense technology, provides a range of solutions, including air and missile defense, smart weapons, advanced sensors, and space-based systems. RTX, the parent company, stands as the world’s largest aerospace and defense company, with a market capitalization of $180.62 billion. The company employs over 185,000 people globally and has maintained dividend payments for 55 consecutive years, currently offering a 2.01% yield. InvestingPro analysis indicates the stock is currently trading near Fair Value, with 8 additional exclusive insights available to subscribers.
The information in this article is based on a press release statement.
In other recent news, RTX Corp has announced a 7.9% increase in its quarterly cash dividend, raising it to 68 cents per share. This decision reflects the company’s confidence in its financial health and its commitment to returning capital to shareholders. RTX reported sales exceeding $80 billion in 2024, highlighting its robust financial performance. Additionally, 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 improved engine and lease rates and advancements in jet engine supply chains.
Moreover, Raytheon Technologies, a segment of RTX, has successfully demonstrated its ASTARTE system during a military exercise, enhancing airspace operations and decision-making capabilities. In defense-related developments, Raytheon has been identified as a potential candidate for a contract to modernize the U.S. air traffic control system, emphasizing the need for updated technology. Furthermore, RTX’s Raytheon division has secured a $1 billion deal with Qatar for counter-drone capabilities, marking Qatar as the first international customer for Raytheon’s FS-LIDS system.
These recent developments indicate RTX’s ongoing efforts to expand its technological capabilities and strengthen its position in the aerospace and defense industries. With a workforce of over 185,000 globally, RTX continues to play a significant role in advancing aviation and defense systems. These strategic moves are part of RTX’s broader financial strategy and commitment to innovation and growth in its key business sectors.
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