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ANDOVER, Mass. - Raytheon, a business segment of RTX (NYSE: RTX), has announced the transition to production of its Lower Tier Air and Missile Defense Sensor (LTAMDS) following the completion of the U.S. Army’s stringent flight test program and the attainment of the Department of Defense’s Major Capability Acquisition Milestone C designation. As a prominent player in the Aerospace & Defense industry with a market capitalization of $172 billion, RTX continues to demonstrate strong execution. InvestingPro data shows the company achieved impressive revenue growth of 17% in the last twelve months.
The LTAMDS has undergone eight successful flight tests that have demonstrated the radar’s capability against realistic threats, prompting the U.S. Army to confirm that the radar system has reached Milestone C. This achievement marks the beginning of the production and deployment stage for the LTAMDS, which is now recognized as an official program of record for the U.S. Army, supporting both domestic defense and overseas missions.
Tom Laliberty, president of Land and Air Defense Systems at Raytheon, highlighted the swift progression from prototype to production, crediting the collaborative efforts with the U.S. Army and industry partners for the expedited execution of the LTAMDS program. The system offers advanced 360-degree integrated air and missile defense capabilities.
The U.S. Army has utilized Middle-Tier Acquisition authority, as granted by Congress, to fast-track the prototyping and fielding of the LTAMDS. Typically, defense projects of this complexity would take over a decade to reach Milestone C.
Raytheon has already delivered the first six LTAMDS units under a 2019 contract and is currently manufacturing eight units annually, with plans to increase production to 12 units per year to meet international demand. Deliveries of the seventh and eighth units are expected later this year, and production includes orders for the U.S. Army and Poland, which were contracted in August 2024. Poland is the inaugural international client to incorporate LTAMDS into their defense architecture, and twelve other nations are also expressing interest in the system. According to InvestingPro analysis, RTX maintains a strong financial position with moderate debt levels, and analysts have set a price target range of $120-160 per share, reflecting confidence in the company’s growth trajectory.
Raytheon is recognized for providing defense solutions and has a century-long history in developing technologies for integrated air and missile defense, smart weapons, and other defense systems. RTX, the parent company and the world’s largest aerospace and defense enterprise, employs over 185,000 people globally and reported sales exceeding $80 billion in 2024, with an EBITDA of $12.8 billion in the last twelve months. The company is based in Arlington, Virginia. For detailed insights into RTX’s financial health, growth prospects, and comprehensive analysis, investors can access the full Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.
This news is based on a press release statement from Raytheon.
In other recent news, RTX Corp’s subsidiary, Raytheon, has secured a follow-on contract with the U.S. Army to extend the use of its Rapid Campaign Analysis and Demonstration Environment (RCADE). This platform will aid in strategic military decision-making by providing data-driven insights. Additionally, Raytheon has awarded contracts to Nammo and Northrop Grumman to boost production capacity for the MK72 solid rocket motor, reflecting an effort to meet increasing global demand for defense systems. Meanwhile, Collins Aerospace, another RTX business unit, announced enhancements to its SelfServ™ platform, integrating biometric solutions to improve the airport experience for travelers.
Analysts from Bernstein maintained a Market Perform rating for RTX Corp, with a price target of $136. They foresee potential growth due to increased export demand and possible rises in the U.S. budget, although challenges remain for subsidiaries Pratt & Whitney and Collins amid trade tensions. Bernstein’s projections align with RTX’s revenue and earnings expectations, with a 2025 free cash flow estimate of $7.3 billion. Pratt & Whitney’s certification of the Advantage variant engine is noted as a positive development, potentially leading to higher profit margins if high-margin spare engine deliveries continue.
RTX, the parent company of both Raytheon and Collins Aerospace, reported sales exceeding $80 billion in 2024. The company is recognized as the world’s largest aerospace and defense entity, employing over 185,000 people globally. These developments highlight RTX’s ongoing efforts to enhance its technological capabilities in both defense and commercial sectors.
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