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Raytheon (RTX) Wins $83M Deal to Support AN/SPY-6 Radar Systems
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Raytheon Technologies Corp.’s (RTX - Free Report) business unit, Missiles and Defense, recently secured a modification contract to provide integration and production support efforts for Air and Missile Defense Radar AN/SPY-6(V). The deal has been awarded by the Naval Sea Systems Command, Washington Navy Yard, D.C.
Valued at $82.7 million, the contract is expected to be completed by December 2021. Majority of the work related to this deal will be conducted in Marlborough, MA.
Radars & Raytheon
With rapid escalation of geopolitical tensions globally in recent times, developed and developing nations have been boosting their defense arsenal significantly. Radars constitute a vital part of their defense equipment. While radars have been in use since World War II for locating threats and targets, nowadays, they are being used for multiple purposes like ground surveillance, missile control, fire control, air traffic control, moving target indication, weapons location, and vehicle search.
Empirically, demand for military radar systems has expanded manifold in recent times, driven by factors like rise in defense spending of emerging economies, increase in regional tensions and inter-country conflicts that have boosted threats from missiles and aircraft. This in turn has been benefiting radar manufacturing companies like Raytheon, in the form of contract wins, like the latest one.
Notably, Raytheon’s product portfolio consists of varied radars like integrated air and missile defense radars, ballistic missile radars, surveillance radars as well as air dominance radars. Radars like AN-SPY 6, AN-TPY-2, APG-79, APG-82 are some of its combat proven products that enjoy solid demand in the global military radar market.
In particular, Raytheon’s SPY-6 program, to which the AN/SPY-6 belongs, is the U.S. Navy family of radars that carries out air and missile defense on seven classes of ships. Being integrated, these radars can defend against ballistic missiles, cruise missiles, hostile aircraft and surface ships simultaneously.
Currently, Raytheon has a contract to supply SPY-6 radars for nine DDG-51 Arleigh Burke-class warships, jointly constructed by General Dynamics (GD - Free Report) and Huntington Ingalls (HII - Free Report) . This surely reflects the solid demand that this radar enjoys in the U.S. radar market.
Growth Prospects
Per Markets and Markets Research, the global military radar market is expected to reach $17.4 billion by 2025 at a CAGR of 4.4% from 2020. Such growth projections for the aforementioned market should benefit prominent radar manufacturers like Raytheon Technologies and Northrop Grumman (NOC - Free Report) .
Notably, Northrop is a pioneer in Active Electronically Scanned Array (AESA) radars and has been at the forefront of AESA innovations for more than 60 years. The company’s broad portfolio of products comprises radars like AN/APG-83 scalable agile beam radar, AN/ASQ-236 Dragon’s eye radar pod as well as AN/APG-81 and AN/APG-71 for F-35 and F-22 jets respectively,
Price Performance and Zacks Rank
Shares of this Zacks Rank #4 (Sell) company have gained 5.6% in the past six months compared with the industry’s increase of 14.9%.
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Raytheon (RTX) Wins $83M Deal to Support AN/SPY-6 Radar Systems
Raytheon Technologies Corp.’s (RTX - Free Report) business unit, Missiles and Defense, recently secured a modification contract to provide integration and production support efforts for Air and Missile Defense Radar AN/SPY-6(V). The deal has been awarded by the Naval Sea Systems Command, Washington Navy Yard, D.C.
Valued at $82.7 million, the contract is expected to be completed by December 2021. Majority of the work related to this deal will be conducted in Marlborough, MA.
Radars & Raytheon
With rapid escalation of geopolitical tensions globally in recent times, developed and developing nations have been boosting their defense arsenal significantly. Radars constitute a vital part of their defense equipment. While radars have been in use since World War II for locating threats and targets, nowadays, they are being used for multiple purposes like ground surveillance, missile control, fire control, air traffic control, moving target indication, weapons location, and vehicle search.
Empirically, demand for military radar systems has expanded manifold in recent times, driven by factors like rise in defense spending of emerging economies, increase in regional tensions and inter-country conflicts that have boosted threats from missiles and aircraft. This in turn has been benefiting radar manufacturing companies like Raytheon, in the form of contract wins, like the latest one.
Notably, Raytheon’s product portfolio consists of varied radars like integrated air and missile defense radars, ballistic missile radars, surveillance radars as well as air dominance radars. Radars like AN-SPY 6, AN-TPY-2, APG-79, APG-82 are some of its combat proven products that enjoy solid demand in the global military radar market.
In particular, Raytheon’s SPY-6 program, to which the AN/SPY-6 belongs, is the U.S. Navy family of radars that carries out air and missile defense on seven classes of ships. Being integrated, these radars can defend against ballistic missiles, cruise missiles, hostile aircraft and surface ships simultaneously.
Currently, Raytheon has a contract to supply SPY-6 radars for nine DDG-51 Arleigh Burke-class warships, jointly constructed by General Dynamics (GD - Free Report) and Huntington Ingalls (HII - Free Report) . This surely reflects the solid demand that this radar enjoys in the U.S. radar market.
Growth Prospects
Per Markets and Markets Research, the global military radar market is expected to reach $17.4 billion by 2025 at a CAGR of 4.4% from 2020. Such growth projections for the aforementioned market should benefit prominent radar manufacturers like Raytheon Technologies and Northrop Grumman (NOC - Free Report) .
Notably, Northrop is a pioneer in Active Electronically Scanned Array (AESA) radars and has been at the forefront of AESA innovations for more than 60 years. The company’s broad portfolio of products comprises radars like AN/APG-83 scalable agile beam radar, AN/ASQ-236 Dragon’s eye radar pod as well as AN/APG-81 and AN/APG-71 for F-35 and F-22 jets respectively,
Price Performance and Zacks Rank
Shares of this Zacks Rank #4 (Sell) company have gained 5.6% in the past six months compared with the industry’s increase of 14.9%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>