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RTX Secures a Contract to Support Tomahawk Missile Program
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RTX Corp. (RTX - Free Report) recently secured a modification contract involving its Tomahawk missiles. The award has been offered by the Naval Air Systems Command, Patuxent River, MD.
Details of the Deal
Valued at $24.5 million, the contract is expected to be completed by October 2025. The latest modification is likely to provide RTX with the opportunity to supply non-recurring tooling and equipment in connection to the procurement of tactical Tomahawk missiles and related articles.
This equipment includes associated labor in support of increasing production and recertification capacity. Work related to this deal will be executed in Tucson, AZ.
What’s Favoring RTX?
Amid the widespread increase in geopolitical tensions worldwide, nations, of late, have been strengthening their defense arsenal. With rapid technological upgrades, missile defense has steadily become pivotal in a nation’s defense strategy.
With the United States being the world’s largest weapon supplier and RTX a prominent U.S. missile maker, the increased missile defense adoption by nations provides the company with solid growth opportunities. The latest contract win is a bright example of that.
To this end, it is imperative to mention that the Tomahawk Naval Strike Missile is a long-range, precision strike weapon that can find and destroy ships at distances of up to 100 nautical miles. A major improvement to Tomahawk is its network-centric warfare capabilities, using data from multiple sensors such as aircraft, UAVs, satellites, foot soldiers, tanks and ships to find its target.
The fact that U.S. and Allied militaries have flight tested the GPS-enabled Tomahawk over 550 times and used it in an operational environment more than 2,350 times reflects the strong demand that this product enjoys in the missile defense market.
Hostile activities like the Russian invasion of Ukraine and the ongoing unrest in the Middle East have been bolstering the demand for the missile market even further. The Mordor Intelligence firm predicts the global market for missiles and missile defense systems to witness a CAGR of 4.82% between 2024 and 2029. This should benefit RTX, which has a handful of combat-proven missiles in its product portfolio, like the TOW missile, Guidance Enhanced Missile, the National Advanced Surface-to-Air Missile System, Patriot, Standard Missile 2 and a few more, in addition to the Tomahawk missile.
Peer Prospects
As global threats continue to rise, apart from RTX, defense contractors that are likely to benefit from the growth opportunities offered by the missiles and missile defense system market are:
Northrop Grumman (NOC - Free Report) : The company designs and produces missile components, including advanced high-speed propulsion systems, fuzes, warheads and controls. It is one of the top suppliers of solid rocket propulsion for air-launched missiles, interceptors, submarine-launched weapons and hypersonic missile systems.
Currently, Northrop is building an ultramodern 113,000-square-foot complex in West Virginia to manufacture more advanced defense and strike missiles. Upon completion in 2024, the Northrop Grumman missile integration facility will support the production of up to 300 strike missiles per year, with an expansion capacity to produce 600 per year.
Lockheed Martin (LMT - Free Report) : Its Missiles and Fire Control business segment provides air and missile defense systems, tactical missiles, and air-to-ground precision strike weapon systems. Some of its products are the PAC-3 family of missiles, M270, RRPR, THHAD and a few more.
LMT’s portfolio also includes the Multiple Launch Rocket System (MLRS), Precision Strike Missile (PrSM), Joint Air-to-Surface Standoff Missile (JASSM), Long Range AntiShip Missile (LRASM), and Hellfire tactical and strike missile programs.
General Dynamics (GD - Free Report) : Its Ordnance and Tactical Systems division creates, develops and manufactures an extensive array of highly advanced weapon systems for use by ground troops. It is the sole producer and system integrator of the 2.75-inch (70 mm) Hydra-70 family of rockets.
Moreover, GD’s unique experience and proven capabilities enable it to support the U.S. Air Force intercontinental ballistic missile strategic weapon systems. General Dynamics Mission Systems has designed, produced, installed and sustained every version of the Weapon Control System (Fire Control) for Polaris, Poseidon, Trident I and Trident II Submarine Launched Ballistic Missile.
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RTX Secures a Contract to Support Tomahawk Missile Program
RTX Corp. (RTX - Free Report) recently secured a modification contract involving its Tomahawk missiles. The award has been offered by the Naval Air Systems Command, Patuxent River, MD.
Details of the Deal
Valued at $24.5 million, the contract is expected to be completed by October 2025. The latest modification is likely to provide RTX with the opportunity to supply non-recurring tooling and equipment in connection to the procurement of tactical Tomahawk missiles and related articles.
This equipment includes associated labor in support of increasing production and recertification capacity. Work related to this deal will be executed in Tucson, AZ.
What’s Favoring RTX?
Amid the widespread increase in geopolitical tensions worldwide, nations, of late, have been strengthening their defense arsenal. With rapid technological upgrades, missile defense has steadily become pivotal in a nation’s defense strategy.
With the United States being the world’s largest weapon supplier and RTX a prominent U.S. missile maker, the increased missile defense adoption by nations provides the company with solid growth opportunities. The latest contract win is a bright example of that.
To this end, it is imperative to mention that the Tomahawk Naval Strike Missile is a long-range, precision strike weapon that can find and destroy ships at distances of up to 100 nautical miles. A major improvement to Tomahawk is its network-centric warfare capabilities, using data from multiple sensors such as aircraft, UAVs, satellites, foot soldiers, tanks and ships to find its target.
The fact that U.S. and Allied militaries have flight tested the GPS-enabled Tomahawk over 550 times and used it in an operational environment more than 2,350 times reflects the strong demand that this product enjoys in the missile defense market.
Hostile activities like the Russian invasion of Ukraine and the ongoing unrest in the Middle East have been bolstering the demand for the missile market even further. The Mordor Intelligence firm predicts the global market for missiles and missile defense systems to witness a CAGR of 4.82% between 2024 and 2029. This should benefit RTX, which has a handful of combat-proven missiles in its product portfolio, like the TOW missile, Guidance Enhanced Missile, the National Advanced Surface-to-Air Missile System, Patriot, Standard Missile 2 and a few more, in addition to the Tomahawk missile.
Peer Prospects
As global threats continue to rise, apart from RTX, defense contractors that are likely to benefit from the growth opportunities offered by the missiles and missile defense system market are:
Northrop Grumman (NOC - Free Report) : The company designs and produces missile components, including advanced high-speed propulsion systems, fuzes, warheads and controls. It is one of the top suppliers of solid rocket propulsion for air-launched missiles, interceptors, submarine-launched weapons and hypersonic missile systems.
Currently, Northrop is building an ultramodern 113,000-square-foot complex in West Virginia to manufacture more advanced defense and strike missiles. Upon completion in 2024, the Northrop Grumman missile integration facility will support the production of up to 300 strike missiles per year, with an expansion capacity to produce 600 per year.
Lockheed Martin (LMT - Free Report) : Its Missiles and Fire Control business segment provides air and missile defense systems, tactical missiles, and air-to-ground precision strike weapon systems. Some of its products are the PAC-3 family of missiles, M270, RRPR, THHAD and a few more.
LMT’s portfolio also includes the Multiple Launch Rocket System (MLRS), Precision Strike Missile (PrSM), Joint Air-to-Surface Standoff Missile (JASSM), Long Range AntiShip Missile (LRASM), and Hellfire tactical and strike missile programs.
General Dynamics (GD - Free Report) : Its Ordnance and Tactical Systems division creates, develops and manufactures an extensive array of highly advanced weapon systems for use by ground troops. It is the sole producer and system integrator of the 2.75-inch (70 mm) Hydra-70 family of rockets.
Moreover, GD’s unique experience and proven capabilities enable it to support the U.S. Air Force intercontinental ballistic missile strategic weapon systems. General Dynamics Mission Systems has designed, produced, installed and sustained every version of the Weapon Control System (Fire Control) for Polaris, Poseidon, Trident I and Trident II Submarine Launched Ballistic Missile.