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Raytheon (RTX) Wins $172M Deal to Develop Three NGJ-Mid-Band

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Raytheon Technologies (RTX - Free Report) recently secured a contract worth $171.7 million, involving the low-rate initial production for their Next Generation Jammer Mid-Band program (NGJ-MB). The contract was provided by the Naval Air Systems Command, Patuxent River, MD.

Details of the Deal

Per the deal terms, Raytheon Technologies will provide three NGJ-MB to the U.S. Navy, alongside offering associated spares, gold units for operational test program set development and associated technical data assistance.

Majority of the work related to the deal will be performed in Dallas, TX, and Forest, MS. The contract is expected to be completed in October 2023.

Importance of NGJ-MB

Raytheon’s NGJ-MB is a jamming technology that provides enhanced airborne electronic attack capabilities to Boeing’s (BA - Free Report) EA-18G Growler aircraft. The NGJ-MB is the U.S. Navy’s advanced electronic attack system to disrupt enemy technology, including air-defense systems and communications tools. The NGJ-MB uses digital, software-based and Active Electronically Scanned Array technologies that allow operators to non-kinetically attack more targets at greater distances.

What Are the Growth Prospects?

Per a report by Research and Markets, the global signal jammer market is expected to witness an incremental growth of $947.15 million, at a CAGR of 5%, during the 2021-2025 period. Increasing defense spending on surveillance and communication jamming along with higher use of UAVs in restricted areas is anticipated to support the growth of the market during the forecasted period.

Such projections bode well for other manufacturers of electronic jamming technologies, such as L3Harris Technologies (LHX - Free Report) and Northrop Grumman Corp. (NOC - Free Report) .

Price Movement and Zacks Rank

Shares of Raytheon Technologies, a Zacks Rank #3 (Hold) company, have gained 20% in the year-to-date period compared with the industry’s growth of 11.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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