We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Raytheon Technologies (RTX) Wins Contract to Support AMRAAM
Read MoreHide Full Article
Raytheon Technologies Corp.’s (RTX - Free Report) business unit, Missiles and Defense, recently secured a modification contract for procuring 35 Captive Air Training Missiles (CATM) and CATM guidance sections involving Advanced Medium Range Air-to-Air Missile (AMRAAM) production. The deal has been offered by the Air Force Life Cycle Management Center (AFLCMC), Air Dominance Division Contracting Office, Eglin Air Force Base, FL.
Valued at $77.1 million, the contract is expected to be completed by Apr 30, 2024. The entire task will be performed in Tucson, AZ.
AMRAAM’s Importance
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, including 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 as well as Lockheed Martin’s (LMT - Free Report) F-22 Raptor and F-35 Lightning.
This missile’s latest version, AMRAAM-Extended Range (ER) missile is a new, ground-launched solution that will intercept targets at longer distances and higher altitudes. Designed specifically for ground-based air defense, the AMRAAM-ER missile will offer increased air defense protection in the medium-range air defense market.
The first AMRAAM-ER missile flight test was successfully completed in the second quarter of 2021, with production deliveries expected in 2022. Once this version is available in the market, we expect to witness increased contract flow for the family of AMRAAM, which in turn would boost Raytheon's revenue growth potential.
Looking Ahead
Per a report by Mordor Intelligence, the global Missiles and Missile Defense Systems (MMDS) market value is projected to see a CAGR of over 10% during 2021-2026 time period. The uptick is likely to be driven by growing conflicts between various countries and the increasing number of investments in missile defense systems being made worldwide, along with rapid technological advancements.
Such impressive projections bode well for prominent missile makers like Lockheed Martin, Raytheon Technologies and Northrop Grumman Corp. (NOC - Free Report)
Image: Bigstock
Raytheon Technologies (RTX) Wins Contract to Support AMRAAM
Raytheon Technologies Corp.’s (RTX - Free Report) business unit, Missiles and Defense, recently secured a modification contract for procuring 35 Captive Air Training Missiles (CATM) and CATM guidance sections involving Advanced Medium Range Air-to-Air Missile (AMRAAM) production. The deal has been offered by the Air Force Life Cycle Management Center (AFLCMC), Air Dominance Division Contracting Office, Eglin Air Force Base, FL.
Valued at $77.1 million, the contract is expected to be completed by Apr 30, 2024. The entire task will be performed in Tucson, AZ.
AMRAAM’s Importance
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, including 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 as well as Lockheed Martin’s (LMT - Free Report) F-22 Raptor and F-35 Lightning.
This missile’s latest version, AMRAAM-Extended Range (ER) missile is a new, ground-launched solution that will intercept targets at longer distances and higher altitudes. Designed specifically for ground-based air defense, the AMRAAM-ER missile will offer increased air defense protection in the medium-range air defense market.
The first AMRAAM-ER missile flight test was successfully completed in the second quarter of 2021, with production deliveries expected in 2022. Once this version is available in the market, we expect to witness increased contract flow for the family of AMRAAM, which in turn would boost Raytheon's revenue growth potential.
Looking Ahead
Per a report by Mordor Intelligence, the global Missiles and Missile Defense Systems (MMDS) market value is projected to see a CAGR of over 10% during 2021-2026 time period. The uptick is likely to be driven by growing conflicts between various countries and the increasing number of investments in missile defense systems being made worldwide, along with rapid technological advancements.
Such impressive projections bode well for prominent missile makers like Lockheed Martin, Raytheon Technologies and Northrop Grumman Corp. (NOC - Free Report)
Zacks Rank and Price Performance
Raytheon Technologies 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 has gained 40% in the past year compared with the industry’s growth of 32.3%.
Image Source: Zacks Investment Research