Raytheon secures $74 million contract for naval defense systems

LOUISVILLE, Ky. - Raytheon, an RTX (NYSE:RTX) business, currently trading near its 52-week high at $146.87, has been awarded a $74 million contract to produce RAM Guided Missile Launching Systems for the U.S. Navy, the company announced Monday. As a prominent player in the Aerospace & Defense industry with a market capitalization of $196 billion, RTX continues to demonstrate its market strength.

The contract, described as the largest single order of U.S. RAM launchers in over two decades, includes production of new launcher systems, refurbishment of current systems, and hardware to support upgrades and spares.

The RAM (Rolling Airframe Missile) weapon system is a joint U.S.-German initiative with Raytheon serving as prime contractor for U.S. Navy requirements. The defense system is currently deployed on more than 165 ships across 11 countries, ranging from fast patrol boats to aircraft carriers.

Barbara Borgonovi, president of Naval Power at Raytheon, said the contract "will ensure our naval assets remain well-protected against anti-ship threats."

The system is being installed on several new U.S. Navy ship classes, including the Arleigh Burke class of guided-missile destroyers. The RAM program will mark its 50th anniversary next year.

Work under the contract will primarily be performed in Louisville, Kentucky, and is expected to be completed by 2028, according to the company’s press release statement.

RTX, formed through the merger of Raytheon and United Technologies, reported 2024 sales exceeding $80 billion and employs approximately 185,000 people globally. The company has maintained dividend payments for 55 consecutive years, demonstrating long-term financial stability. For detailed analysis and additional insights, investors can access comprehensive research reports through InvestingPro, which covers over 1,400 top US stocks.

In other recent news, RTX Corp. has seen several significant developments. Bernstein raised its price target for RTX to $154 from $136, maintaining a Market Perform rating, citing the company’s defense segment as a key strength. The firm noted ongoing demand growth in missile and missile defense businesses, despite challenges with Pratt & Whitney’s GTF engines. Additionally, Raytheon, a part of RTX, has been awarded multiple contracts by the U.S. Department of Defense. These include a $74 million contract for Rolling Airframe Missile systems, a $77 million contract for GPS receivers, a $49.8 million contract for SM-6 missile production, and a substantial $279 million contract for the Phalanx Weapon System. These contracts are set to be executed across various locations, with completion dates spanning from 2028 to 2031. The contracts highlight Raytheon’s ongoing role in providing advanced defense solutions. These developments reflect RTX’s active engagement in defense projects and its potential for future growth in this sector.

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