Raytheon Technologies Corp. ( RTX Quick Quote RTX - Free Report) recently won a modification contract for the manufacturing and delivery of five Next Generation Jammer Mid-Band (NGJ-MB). The award has been offered by the Naval Air Systems Command, Patuxent River, MD. Details of the Deal
Valued at $226.7 million, the contract is expected to get completed by September 2024. Per the terms, Raytheon will also manufacture and then supply associated spares, peculiar support equipment, gold units for operational test program set development as well as travel and associated data.
The majority of the work related to this deal will be performed in Forest, MS.
Importance of NGJ-MB
Raytheon’s NGJ-MB is a jamming technology that provides enhanced airborne electronic attack capabilities to EA-18G Growler fighter 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.
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 forecast period.
Such projections bode well for other manufacturers of electronic jamming technologies such as L3Harris Technologies ( LHX Quick Quote LHX - Free Report) , Northrop Grumman ( NOC Quick Quote NOC - Free Report) and Lockheed Martin ( LMT Quick Quote LMT - Free Report) .
L3Harris manufactures a handful of electronic warfare (EW) systems like AN/ALQ-214 (IDECM) F/A-18 Countermeasure System, Viper Shield AN/ALQ-254(V)1 All-digital Electronic Warfare Suite, AN/ALQ-161A B1-B Countermeasure System, AN/ALQ-172 B-52 and C-130 Self Protection System and CREW Vehicle Receiver/Jammer (CVRJ).
The long-term growth rate of L3 Harris Technologies is pegged at 6.4%. LHX’s shares have rallied 12.5% in the past year.
Northrop Grumman has provided Naval Airborne Electronic Warfare solutions for more than 55 years and is the Airborne Electronic Attack System Integrator for the U.S. Navy warfighter. Some of its EW systems include the ALQ-251 radio frequency countermeasures system and the AN/APR-39 Radar Warning Receiver/Electronic Warfare Management System.
Northrop boasts a solid long-term earnings growth rate of 9%. NOC stock has gained 27.7% in the past year.
Lockheed Martin provides global ground EW solutions to U.S. forces, as well as partner nations, through a unique next-generation open architecture product platform and open business model. Its Advanced Off-Board Electronic Warfare (AOEW) program delivers persistent electronic surveillance and attack capability against naval threats like anti-ship missiles. Lockheed boasts a solid long-term earnings growth rate of 3.6%. It surpassed the Zacks Consensus Estimate in the past four quarters, with the average earnings surprise being 63.28%. Price Movement and Zacks Rank
Shares of Raytheon Technologies have gained 21.2% in the past year compared with the
industry's growth of 9.7%. Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .