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's (RTX) Arm Wins $113.9M Deal for the AIM-9X Missile
Read MoreHide Full Article
Raytheon Technologies Corp.’s (RTX - Free Report) business unit, Missiles & Defense, recently clinched a $113.9 million modification contract for the production and delivery of additional AIM-9X Lot 22 requirements. The Naval Air Systems Command, Patuxent River, MD awarded the deal.
A major portion of the work related to this deal will be carried out at multiple locations across the United States. The work is scheduled to be completed by November 2025.
Moreover, the contract will serve the U.S. Army and foreign military sales.
Significance of AIM-9X
Raytheon’s AIM-9X Sidewinder is a triple-threat missile that can be used for air-to-air engagements, and surface-attack and surface-launch missions without modifications. The advanced infrared-tracking, short-range missile is combat-proven in several theaters worldwide.
Moreover, it is configured for easy installation on a range of modern aircraft. These include the F-15C Eagle, F-15E Strike Eagle, F-16 Fighting Falcon, F/A-18 Super Hornet, E/A-18G Growler, F-22 Raptor and all F-35 Joint Strike Fighter variants.
The AIM-9X Block II missile adds a redesigned fuse and a digital ignition safety device to improve handling and in-flight safety. It's equipped with updated electronics, including a lock-on-after-launch capability using a new weapon datalink to support beyond-visual-range engagements.
Due to its advanced features, RTX has been witnessing strong demand involving the missile. The latest contract win is an example of that. The strength in demand for the missile can be gauged by its customer base of 28 Foreign Military Sales partners apart from the U.S. Army.
Moreover, with the rising geopolitical tension and political risks, the demand may continue to increase by leaps and bounds. This may boost Raytheon’s revenue generation prospects from missile programs in the long term.
Growth Prospects
The rising geopolitical tension and the recent turbulence between Russia and Ukraine have resulted in many countries increasing their defense budget to improve and modernize warfare capabilities and strengthen their arms and ammunition inventory.
The intensifying demand for technologically advanced weapons and arsenals has spurred the demand for an effective missile, thereby boosting the market’s growth. Per Mordor Intelligence, the missiles and missile defense systems market is estimated to witness a CAGR of 4.9% between 2022 and 2027.
Such a solid market projection is estimated to boost major defense primes like Raytheon, General Dynamics (GD - Free Report) , Lockheed Martin (LMT - Free Report) and Northrop Grumman (NOC - Free Report) .
General Dynamics’ Ordnance and Tactical Systems is the system integrator of the 2.75-inch Hydra-70 family of rockets. It also produces composite rocket motor cases and launch tubes for tactical and strategic missiles.
General Dynamics’ long-term earnings growth rate is pegged at 9.3%. GD shares have returned 24.6% in the past year.
Lockheed Martin’s Missiles and Fire Control (“MFC”) is a recognized designer, developer and manufacturer of precision engagement aerospace and defense systems for the United States and allied militaries. MFC develops, manufactures and supports advanced-combat missile, rocket, manned and unmanned systems for military customers that include the U.S. Army, the Navy, the Air Force, the Marine Corps, NASA and dozens of foreign allies.
Lockheed Martin’s long-term earnings growth rate is pegged at 6.2%. Shares of LMT have increased 38.3% in the past year.
Northrop Grumman designs and produces missile products. These include advanced high-speed propulsion systems, fuses, warheads and controls for air, sea and land-based systems.
The long-term earnings growth rate of Northrop Grumman is pegged at 2.9%. Shares of NOC have returned 43.4% to its investors in the past year.
Price Movement
In the past year, shares of Raytheon Technologies have rallied 9.9% against the industry’s decline of 0.3%.
Image: Bigstock
Raytheon's (RTX) Arm Wins $113.9M Deal for the AIM-9X Missile
Raytheon Technologies Corp.’s (RTX - Free Report) business unit, Missiles & Defense, recently clinched a $113.9 million modification contract for the production and delivery of additional AIM-9X Lot 22 requirements. The Naval Air Systems Command, Patuxent River, MD awarded the deal.
A major portion of the work related to this deal will be carried out at multiple locations across the United States. The work is scheduled to be completed by November 2025.
Moreover, the contract will serve the U.S. Army and foreign military sales.
Significance of AIM-9X
Raytheon’s AIM-9X Sidewinder is a triple-threat missile that can be used for air-to-air engagements, and surface-attack and surface-launch missions without modifications. The advanced infrared-tracking, short-range missile is combat-proven in several theaters worldwide.
Moreover, it is configured for easy installation on a range of modern aircraft. These include the F-15C Eagle, F-15E Strike Eagle, F-16 Fighting Falcon, F/A-18 Super Hornet, E/A-18G Growler, F-22 Raptor and all F-35 Joint Strike Fighter variants.
The AIM-9X Block II missile adds a redesigned fuse and a digital ignition safety device to improve handling and in-flight safety. It's equipped with updated electronics, including a lock-on-after-launch capability using a new weapon datalink to support beyond-visual-range engagements.
Due to its advanced features, RTX has been witnessing strong demand involving the missile. The latest contract win is an example of that. The strength in demand for the missile can be gauged by its customer base of 28 Foreign Military Sales partners apart from the U.S. Army.
Moreover, with the rising geopolitical tension and political risks, the demand may continue to increase by leaps and bounds. This may boost Raytheon’s revenue generation prospects from missile programs in the long term.
Growth Prospects
The rising geopolitical tension and the recent turbulence between Russia and Ukraine have resulted in many countries increasing their defense budget to improve and modernize warfare capabilities and strengthen their arms and ammunition inventory.
The intensifying demand for technologically advanced weapons and arsenals has spurred the demand for an effective missile, thereby boosting the market’s growth. Per Mordor Intelligence, the missiles and missile defense systems market is estimated to witness a CAGR of 4.9% between 2022 and 2027.
Such a solid market projection is estimated to boost major defense primes like Raytheon, General Dynamics (GD - Free Report) , Lockheed Martin (LMT - Free Report) and Northrop Grumman (NOC - Free Report) .
General Dynamics’ Ordnance and Tactical Systems is the system integrator of the 2.75-inch Hydra-70 family of rockets. It also produces composite rocket motor cases and launch tubes for tactical and strategic missiles.
General Dynamics’ long-term earnings growth rate is pegged at 9.3%. GD shares have returned 24.6% in the past year.
Lockheed Martin’s Missiles and Fire Control (“MFC”) is a recognized designer, developer and manufacturer of precision engagement aerospace and defense systems for the United States and allied militaries. MFC develops, manufactures and supports advanced-combat missile, rocket, manned and unmanned systems for military customers that include the U.S. Army, the Navy, the Air Force, the Marine Corps, NASA and dozens of foreign allies.
Lockheed Martin’s long-term earnings growth rate is pegged at 6.2%. Shares of LMT have increased 38.3% in the past year.
Northrop Grumman designs and produces missile products. These include advanced high-speed propulsion systems, fuses, warheads and controls for air, sea and land-based systems.
The long-term earnings growth rate of Northrop Grumman is pegged at 2.9%. Shares of NOC have returned 43.4% to its investors in the past year.
Price Movement
In the past year, shares of Raytheon Technologies have rallied 9.9% against the industry’s decline of 0.3%.
Image Source: Zacks Investment Research
Zacks Rank
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.