Back to top

Image: Bigstock

Raytheon (RTX) Wins $74M Deal to Support AMRAAM Weapon System

Read MoreHide Full Article

Raytheon Technologies Corp.’s (RTX - Free Report) Missiles and Defense segment recently clinched a $74-million contract for Advanced Medium Range Air-to-Air Missile (AMRAAM) aircraft integration support. Work related to the deal will be executed in Tucson, AZ, and is scheduled to be completed by Mar 30, 2032. The contract has been awarded by the Air Force Life Cycle Management Center, Eglin Air Force Base, FL.

Per the deal terms, Raytheon Technologies’ Missiles and Defense unit will provide the required aircraft lab, flight test, flight clearance and simulation support during all integration requirements in AMRAAM for F-15, F-16, FA-18, F-22 and F-35 aircraft. It will also provide aircraft integration support for next-generation aircraft platforms that may join the Air Force or Navy inventory before the end of fiscal 2029.  

Growing Demand for Raytheon’s AMRAAM

Raytheon Technologies’ AMRAAM is a versatile combat-proven air dominance weapon and enjoys solid demand from varied countries worldwide. This is evident from the latest contract win. Notably, this missile is currently being used by 37 countries across the globe, which include nations such as Norway, Australia, the United Kingdom, Japan, Poland, Kuwait, Qatar, and other allied countries. AMRAAM has been integrated into some of the renowned fighter jets like Boeing’s (BA - Free Report) F-15 and F/A-18 and Lockheed Martin’s (LMT - Free Report) F-22 Raptor and F-35 Lightning.

In 2020, Raytheon Technologies procured a handful of multimillion-dollar contracts related to AMRAAM. To list a few, in July, the company secured a $495.1-million contract to provide program support and annual sustainment for AMRAAM. In September, it secured a contract worth $125 million for upgrading the AMRAAM system. All such contract wins reflect its growing importance on a global scale.

In 2020, Raytheon Technologies came out with a software update for AMRAAM. This is a further indication of potential growing demand for more upgraded missiles. Such demand boosts the chances of this missile maker to win more contracts.

Budget Aiding Growth Prospects

The U.S. fiscal 2021 defense budget proposal provisioned $20.3 billion for major war-fighting investments in missile defense. This should enable Raytheon Technologies to clinch more contracts related to missile defense systems and associated services, considering the company’s proven expertise in varied missile systems.

Other major missile defense players like General Dynamics (GD - Free Report) , Boeing and Lockheed Martin are also expected to benefit from the aforementioned budget provision.

Price Performance and Zacks Rank

Raytheon Technologies, a Zacks Rank #3 (Hold) stock, has gained 3.7% in the past three months compared with the industry’s growth of 1.8%. 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>>

Published in