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Raytheon (RTX) Wins 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.
Details of the Deal
Valued at $67.7 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.
This modification includes options, which, on being exercised, would bring the cumulative value of this modification to $781 million.
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 this arsenal.
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.
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, Lockheed Martin (LMT - Free Report) , L3Harris Technologies (LHX - Free Report) and Northrop Grumman (NOC - Free Report) .
Notably, Lockheed’s product portfolio includes various radar and electro-optical/infrared sensor systems like AN/APY-9 radar, airborne ground surveillance radar systems, IRST21 Sensos system, AN/TPQ-53 radar systems, SPY-7, long range discrimination radar and a few more.
L3Harris’ manufactures combat-proven radars like SPS-48 Land based surveillance radar, AN/APY-11 Multimode radar, Tactical Air Surveillance radar, AN/SPS-48G Long range 3D surveillance radar and many more.
Northrop’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.
Image: Bigstock
Raytheon (RTX) Wins 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.
Details of the Deal
Valued at $67.7 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.
This modification includes options, which, on being exercised, would bring the cumulative value of this modification to $781 million.
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 this arsenal.
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.
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, Lockheed Martin (LMT - Free Report) , L3Harris Technologies (LHX - Free Report) and Northrop Grumman (NOC - Free Report) .
Notably, Lockheed’s product portfolio includes various radar and electro-optical/infrared sensor systems like AN/APY-9 radar, airborne ground surveillance radar systems, IRST21 Sensos system, AN/TPQ-53 radar systems, SPY-7, long range discrimination radar and a few more.
L3Harris’ manufactures combat-proven radars like SPS-48 Land based surveillance radar, AN/APY-11 Multimode radar, Tactical Air Surveillance radar, AN/SPS-48G Long range 3D surveillance radar and many more.
Northrop’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.
Zacks Rank and Price Performance
Raytheon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company’s shares have gained 21.3% in the past six months compared with the industry’s increase of 8.3%.
Image Source: Zacks Investment Research