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Raytheon (RTX) Secures Deal to Provide CETS for Combat Jets
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Raytheon Technologies Corp. (RTX - Free Report) has recently secured a contract for providing Contractor Engineering and Technical Services (CETS). The Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, OH, has offered this contract.
Details of the Deal
Valued at $14.4 million, the contract is projected to be completed by Sep 15, 2025. It entails provision for CETS personnel, who will work with Air Force military and civilian personnel to become self-sufficient in the maintenance of aircraft systems.
Work related to this deal will be performed at Air National Guard and foreign military base locations. This contract involves unclassified Foreign Military Sales to Egypt, Indonesia, Jordan, the Republic of South Korea, Morocco, Saudi Arabia and Thailand.
Rising Demand for Military Jets & Raytheon
With rising security threats across the globe, emerging economies like South America, the Asia Pacific and the Middle East are spending rapidly to enhance their defense arsenals. Meanwhile, other nations like Europe and the United States are already leading the defense market.
It is imperative to mention in this context that military aircraft, both manned and unmanned, form an integral part of a country’s defense products. The emerging trends in the combat aircraft space, like fifth-generation technology aircraft, advanced composite materials and stealth technology have been substantially driving demand for military jets.
With North America leading the expanding global military jet market, Raytheon, on the strength of its Collins Aerospace segment, is one of the top players in the U.S. combat aircraft market. Notably, 66% of the world’s airspace is managed by the company’s systems.
Raytheon’s products offer a range of services in the military aerospace, including threat detection, jamming and safe return of the pilot. This enables RTX to enjoy a steady and frequent order flow from Pentagon and other U.S. allies. The latest contract win is a testament to that.
Growth Prospects
Per Mordor Intelligence projections, the global military aircraft market is expected to witness a CAGR of more than 4% during 2022-2031. Such predictions indicate immense opportunities for Raytheon to reap the benefits of military aircraft market expansion.
Other prominent defense majors involved in the manufacturing and maintenance of military aircraft are Northrop Grumman (NOC - Free Report) , General Dynamics (GD - Free Report) and Textron (TXT - Free Report) . These companies are thus also expected to gain from the aforementioned market’s growth opportunities.
Since its inception, Northrop Grumman has been a pioneer in the development of manned aircraft. From fighter jets and stealth bombers to surveillance and electronic warfare, Northrop Grumman has been providing manned solutions to customers worldwide. It has built some of the world’s most advanced aircraft, ranging from the innovative B-2 Spirit stealth bomber to the game-changing E-2D Advanced Hawkeye.
Its Aeronautics Systems unit is engaged in the design, development, production, integration, sustainment and modernization of advanced aircraft systems. The Mission Systems segment, on the other hand, offers advanced mission solutions and multifunction systems like Airborne Early Warning & Control, LONGBOW Fire Control Radar and Scalable Agile Beam Radar.
General Dynamics’ Mission Systems unit is a renowned provider of state-of-the-art avionics in military aircraft. Its secured avionics ranges from high assurance mission computers to on-board weapons systems, sensor processing to trusted communications.
The unit is also engaged in developing radomes to wing and engine structures, for the most advanced military aircraft.
Textron’s military aircraft includes the Beechcraft T-6 training aircraft and the Beechcraft AT-6 light attack aircraft. The company also manufactures the Beechcraft Model 18 light bomber, the T-44 and T-34 training aircraft and the T-1A jet trainer.
Its subsidiary, Able Aerospace Services, provides component and maintenance, repair and overhaul services for commercial and military fixed- and rotor-wing aircraft.
Price Movement
Shares of Raytheon have gained 12.8% in the past six months compared with the industry’s 11.7% rise.
Image: Bigstock
Raytheon (RTX) Secures Deal to Provide CETS for Combat Jets
Raytheon Technologies Corp. (RTX - Free Report) has recently secured a contract for providing Contractor Engineering and Technical Services (CETS). The Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, OH, has offered this contract.
Details of the Deal
Valued at $14.4 million, the contract is projected to be completed by Sep 15, 2025. It entails provision for CETS personnel, who will work with Air Force military and civilian personnel to become self-sufficient in the maintenance of aircraft systems.
Work related to this deal will be performed at Air National Guard and foreign military base locations. This contract involves unclassified Foreign Military Sales to Egypt, Indonesia, Jordan, the Republic of South Korea, Morocco, Saudi Arabia and Thailand.
Rising Demand for Military Jets & Raytheon
With rising security threats across the globe, emerging economies like South America, the Asia Pacific and the Middle East are spending rapidly to enhance their defense arsenals. Meanwhile, other nations like Europe and the United States are already leading the defense market.
It is imperative to mention in this context that military aircraft, both manned and unmanned, form an integral part of a country’s defense products. The emerging trends in the combat aircraft space, like fifth-generation technology aircraft, advanced composite materials and stealth technology have been substantially driving demand for military jets.
With North America leading the expanding global military jet market, Raytheon, on the strength of its Collins Aerospace segment, is one of the top players in the U.S. combat aircraft market. Notably, 66% of the world’s airspace is managed by the company’s systems.
Raytheon’s products offer a range of services in the military aerospace, including threat detection, jamming and safe return of the pilot. This enables RTX to enjoy a steady and frequent order flow from Pentagon and other U.S. allies. The latest contract win is a testament to that.
Growth Prospects
Per Mordor Intelligence projections, the global military aircraft market is expected to witness a CAGR of more than 4% during 2022-2031. Such predictions indicate immense opportunities for Raytheon to reap the benefits of military aircraft market expansion.
Other prominent defense majors involved in the manufacturing and maintenance of military aircraft are Northrop Grumman (NOC - Free Report) , General Dynamics (GD - Free Report) and Textron (TXT - Free Report) . These companies are thus also expected to gain from the aforementioned market’s growth opportunities.
Since its inception, Northrop Grumman has been a pioneer in the development of manned aircraft. From fighter jets and stealth bombers to surveillance and electronic warfare, Northrop Grumman has been providing manned solutions to customers worldwide. It has built some of the world’s most advanced aircraft, ranging from the innovative B-2 Spirit stealth bomber to the game-changing E-2D Advanced Hawkeye.
Its Aeronautics Systems unit is engaged in the design, development, production, integration, sustainment and modernization of advanced aircraft systems. The Mission Systems segment, on the other hand, offers advanced mission solutions and multifunction systems like Airborne Early Warning & Control, LONGBOW Fire Control Radar and Scalable Agile Beam Radar.
General Dynamics’ Mission Systems unit is a renowned provider of state-of-the-art avionics in military aircraft. Its secured avionics ranges from high assurance mission computers to on-board weapons systems, sensor processing to trusted communications.
The unit is also engaged in developing radomes to wing and engine structures, for the most advanced military aircraft.
Textron’s military aircraft includes the Beechcraft T-6 training aircraft and the Beechcraft AT-6 light attack aircraft. The company also manufactures the Beechcraft Model 18 light bomber, the T-44 and T-34 training aircraft and the T-1A jet trainer.
Its subsidiary, Able Aerospace Services, provides component and maintenance, repair and overhaul services for commercial and military fixed- and rotor-wing aircraft.
Price Movement
Shares of Raytheon have gained 12.8% in the past six months compared with the industry’s 11.7% rise.
Image Source: Zacks Investment Research
Zacks Rank
Raytheon currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.