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Raytheon (RTX) Wins Deal for Relocatable Over-the-Horizon Radar
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Raytheon Technologies Corp. (RTX - Free Report) has secured a contract to support relocatable over-the-horizon radar (ROTHR). The award has been provided by the Naval Supply Systems Command Fleet Logistics Center Norfolk, Contracting Department Philadelphia Office, Philadelphia, PA.
Details of the Deal
Valued at $87.5 million, the contract is expected to be completed by August 2027. Per the terms of the deal, Raytheon will offer engineering and program support services for ROTHR at the Forces Surveillance Support Center, Chesapeake, VA.
These services include critical software enhancements, maintenance, installation, removal, integration and testing, as well as associated engineering, technical, training and logistics support.
Majority of the work related to this deal will be carried out in Chesapeake, VA and Marlboro, MA.
Radars & Raytheon
With the 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 their defense equipment.
Of late, the demand for military radar systems has expanded manifold, driven by factors like an increase in defense spending of emerging economies, and a rise in regional tensions and inter-country conflicts that have boosted threats from missiles and aircraft. The escalated demand has been benefiting radar manufacturing companies like Raytheon in the form of contract wins, like the latest one.
In March 2023, Raytheon was selected by the U.S. Navy to be the lead systems integrator for the improved maritime enhancements to the ROTHR, which will provide long-range detection to prevent drugs from entering the United States. RTX’s responsibility includes integrating the hardware and software of the radar. These capabilities will help identify and track ships or aircraft (up to 3000 kilometers) that may be attempting to bring drugs into the United States.
The company’s importance in the radar market can be further gauzed from its product portfolio consisting 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 Fortune Business Insights firm, the global military radar market is expected to reach $22.1 billion by 2028 at a CAGR of 6.3% from 2021. Such growth projections should benefit prominent radar manufacturers like Raytheon, Northrop Grumman (NOC - Free Report) , Lockheed Martin (LMT - Free Report) and L3Harris Technologies (LHX - Free Report) .
Notably, Northrop is a pioneer in Active Electronically Scanned Array (AESA) radars and has been at the forefront of AESA innovations for more than 60 years. The company’s broad portfolio of products comprises of radars like AN/APG-83 scalable agile beam radar and AN/ASQ-236 Dragon’s eye radar pod. It also includes AN/APG-81 and AN/APG-71 for F-35 and F-22 jets, respectively.
Northrop boasts a long-term earnings growth rate of 3.8%. The Zacks Consensus Estimate for its 2023 sales indicates an improvement of 4.7% from the 2022 reported figure.
Lockheed’s notable radar portfolio consists of SPY-7, AN/TPQ-53 radar system and AN/APY-9 radar.
LMT boasts a long-term earnings growth rate of 6.2%. The stock has rallied 12.7% in the past year.
Similarly, L3Harris manufactures AN/SPS-48G naval radar, Symphony Airfield Radar Systems, Tactical Air Surveillance radars and a few more.
L3 Harris boasts a long-term earnings growth rate of 2.6%. The Zacks Consensus Estimate for its 2023 sales indicates an improvement of 3.7% from the 2022 reported figure.
Price Performance
In the past year, Raytheon’s shares have risen 9.5% compared with the industry’s 13.9% growth.
Image: Bigstock
Raytheon (RTX) Wins Deal for Relocatable Over-the-Horizon Radar
Raytheon Technologies Corp. (RTX - Free Report) has secured a contract to support relocatable over-the-horizon radar (ROTHR). The award has been provided by the Naval Supply Systems Command Fleet Logistics Center Norfolk, Contracting Department Philadelphia Office, Philadelphia, PA.
Details of the Deal
Valued at $87.5 million, the contract is expected to be completed by August 2027. Per the terms of the deal, Raytheon will offer engineering and program support services for ROTHR at the Forces Surveillance Support Center, Chesapeake, VA.
These services include critical software enhancements, maintenance, installation, removal, integration and testing, as well as associated engineering, technical, training and logistics support.
Majority of the work related to this deal will be carried out in Chesapeake, VA and Marlboro, MA.
Radars & Raytheon
With the 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 their defense equipment.
Of late, the demand for military radar systems has expanded manifold, driven by factors like an increase in defense spending of emerging economies, and a rise in regional tensions and inter-country conflicts that have boosted threats from missiles and aircraft. The escalated demand has been benefiting radar manufacturing companies like Raytheon in the form of contract wins, like the latest one.
In March 2023, Raytheon was selected by the U.S. Navy to be the lead systems integrator for the improved maritime enhancements to the ROTHR, which will provide long-range detection to prevent drugs from entering the United States. RTX’s responsibility includes integrating the hardware and software of the radar. These capabilities will help identify and track ships or aircraft (up to 3000 kilometers) that may be attempting to bring drugs into the United States.
The company’s importance in the radar market can be further gauzed from its product portfolio consisting 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 Fortune Business Insights firm, the global military radar market is expected to reach $22.1 billion by 2028 at a CAGR of 6.3% from 2021. Such growth projections should benefit prominent radar manufacturers like Raytheon, Northrop Grumman (NOC - Free Report) , Lockheed Martin (LMT - Free Report) and L3Harris Technologies (LHX - Free Report) .
Notably, Northrop is a pioneer in Active Electronically Scanned Array (AESA) radars and has been at the forefront of AESA innovations for more than 60 years. The company’s broad portfolio of products comprises of radars like AN/APG-83 scalable agile beam radar and AN/ASQ-236 Dragon’s eye radar pod. It also includes AN/APG-81 and AN/APG-71 for F-35 and F-22 jets, respectively.
Northrop boasts a long-term earnings growth rate of 3.8%. The Zacks Consensus Estimate for its 2023 sales indicates an improvement of 4.7% from the 2022 reported figure.
Lockheed’s notable radar portfolio consists of SPY-7, AN/TPQ-53 radar system and AN/APY-9 radar.
LMT boasts a long-term earnings growth rate of 6.2%. The stock has rallied 12.7% in the past year.
Similarly, L3Harris manufactures AN/SPS-48G naval radar, Symphony Airfield Radar Systems, Tactical Air Surveillance radars and a few more.
L3 Harris boasts a long-term earnings growth rate of 2.6%. The Zacks Consensus Estimate for its 2023 sales indicates an improvement of 3.7% from the 2022 reported figure.
Price Performance
In the past year, Raytheon’s shares have risen 9.5% compared with the industry’s 13.9% growth.
Image Source: Zacks Investment Research
Zacks Rank
Raytheon carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.