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RTX's Arm Wins a Contract for Upgrading U.K. Chinook Helicopters
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RTX Corporation’s (RTX - Free Report) unit, Collins Aerospace, recently secured a contract worth $19 million to configure a fleet of new H-47 Chinooks for the U.K. Royal Air Force with its Common Avionics Architecture System ("CAAS") avionics management suite. Work associated with this contract will be executed in Cedar Rapids, IA, and Huntsville, AL.
These cockpit upgrades will make the U.K. Chinooks interoperable with the U.S. Chinooks as both will be using the same avionics system, advanced digital cockpit displays and applications. The award has been provided by the U.S. Department of Defense.
What’s Favoring RTX?
With countries worldwide enhancing their defense capabilities, spending on advanced military systems, including Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) technologies, has been rapidly increasing. To this end, it is imperative to mention that RTX’s Collins Aerospace unit is a renowned provider of C4ISR technology, offering critical system upgrades across multiple domains. As a result, it continues to secure a steady flow of orders for its advanced C4ISR capabilities from the Pentagon and U.S. allies, with the latest contract win being an example.
Notably, Collins Aerospace’s CAAS Avionics Management System transforms cockpit with its Flight2 Modular Open Systems Approach (MOSA) architecture, integrating communications, navigation and mission subsystems. CAAS relies on proven, off-the-shelf components to deliver high performance with minimal risk. It includes flexible cockpit displays optimized for cargo, assault and multi-mission roles. CAAS’ integrated flight and mission management with cognitive decision support helps reduce pilot workload in demanding missions, thereby enabling faster decision-making and improving situational awareness during missions.
No doubt the C4ISR upgrades, mentioned in the latest contract win, once incorporated on the H-47 Chinooks platform will provide the U.K. Royal Air Force with enhanced information about battle command and control management, thereby boosting mission readiness.
RTX’s Growth Prospects
Rising military conflicts, terrorism and border disputes have driven nations across the globe to focus more on national security, particularly in strengthening C4ISR capabilities, backed by the growing demand for advanced technologies like network-based battle control, unmanned vehicles and advanced sensor technologies as well as the rising complexity of warfares.
This is likely to have prompted Mordor Intelligence to forecast a compound annual growth rate of 3.2% for the global C4ISR market during the 2024-2029 time period.
This is likely to benefit RTX a prominent forerunner in C4ISR technologies. The company focuses on providing integrated avionics solutions for civil as well as military aircraft. For instance, apart from its CAAS Avionics Management System, RTX’s market proven Avionics Management System for the Sikorsky S-92 multi-mission helicopter features high resolution multi-function displays easily viewable in all light conditions, with extensive configurability to support surveillance and situational awareness systems. Its Collins unit also offers a market-leading suite of communication and navigation products like VHF transceiver, VOR/ILS/Marker Beacon receiver and many more.
Prospects of NOC’s Peers
Other defense companies that are likely to enjoy the perks of the expanding C4ISR market have been discussed below.
Lockheed Martin Corporation (LMT - Free Report) : The company provides advanced systems for surveillance, reconnaissance and battle management. One of its key programs includes the Command Control Battle Management Communications, which is the first battle management system capable of integrating across domains.
The company’s long-term (three to five years) earnings growth rate is 4.5%. The Zacks Consensus Estimate for LMT’s 2024 sales indicates year-over-year growth of 5.3%.
General Dynamics Corporation (GD - Free Report) : The company offers advanced communication systems, command and control solutions and ISR platforms that support military forces worldwide. Notably, its subsidiary in Canada offers the Land C4ISR system to the nation’s armed forces to coordinate and conduct modern operations.
The company’s long-term earnings growth rate is 11.8%. The Zacks Consensus Estimate for GD’s 2024 sales indicates year-over-year growth of 13.5%.
Northrop Grumman Corporation (NOC - Free Report) : The company has been delivering end-to-end communications and advanced networking capabilities for the United States and allied military forces operating across multiple battlespace domains. Notably, its autonomous high-altitude, long-endurance systems offer unrivaled situational awareness over land and maritime domains.
The company’s long-term earnings growth rate is 19.1%. The Zacks Consensus Estimate for NOC’s 2024 sales indicates year-over-year growth of 5.3%.
RTX Stock’s Price Movement
Shares of RTX have gained 14.7% in the past three months compared with the industry’s 2.3% growth.
Image: Bigstock
RTX's Arm Wins a Contract for Upgrading U.K. Chinook Helicopters
RTX Corporation’s (RTX - Free Report) unit, Collins Aerospace, recently secured a contract worth $19 million to configure a fleet of new H-47 Chinooks for the U.K. Royal Air Force with its Common Avionics Architecture System ("CAAS") avionics management suite. Work associated with this contract will be executed in Cedar Rapids, IA, and Huntsville, AL.
These cockpit upgrades will make the U.K. Chinooks interoperable with the U.S. Chinooks as both will be using the same avionics system, advanced digital cockpit displays and applications. The award has been provided by the U.S. Department of Defense.
What’s Favoring RTX?
With countries worldwide enhancing their defense capabilities, spending on advanced military systems, including Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) technologies, has been rapidly increasing. To this end, it is imperative to mention that RTX’s Collins Aerospace unit is a renowned provider of C4ISR technology, offering critical system upgrades across multiple domains. As a result, it continues to secure a steady flow of orders for its advanced C4ISR capabilities from the Pentagon and U.S. allies, with the latest contract win being an example.
Notably, Collins Aerospace’s CAAS Avionics Management System transforms cockpit with its Flight2 Modular Open Systems Approach (MOSA) architecture, integrating communications, navigation and mission subsystems. CAAS relies on proven, off-the-shelf components to deliver high performance with minimal risk. It includes flexible cockpit displays optimized for cargo, assault and multi-mission roles. CAAS’ integrated flight and mission management with cognitive decision support helps reduce pilot workload in demanding missions, thereby enabling faster decision-making and improving situational awareness during missions.
No doubt the C4ISR upgrades, mentioned in the latest contract win, once incorporated on the H-47 Chinooks platform will provide the U.K. Royal Air Force with enhanced information about battle command and control management, thereby boosting mission readiness.
RTX’s Growth Prospects
Rising military conflicts, terrorism and border disputes have driven nations across the globe to focus more on national security, particularly in strengthening C4ISR capabilities, backed by the growing demand for advanced technologies like network-based battle control, unmanned vehicles and advanced sensor technologies as well as the rising complexity of warfares.
This is likely to have prompted Mordor Intelligence to forecast a compound annual growth rate of 3.2% for the global C4ISR market during the 2024-2029 time period.
This is likely to benefit RTX a prominent forerunner in C4ISR technologies. The company focuses on providing integrated avionics solutions for civil as well as military aircraft. For instance, apart from its CAAS Avionics Management System, RTX’s market proven Avionics Management System for the Sikorsky S-92 multi-mission helicopter features high resolution multi-function displays easily viewable in all light conditions, with extensive configurability to support surveillance and situational awareness systems. Its Collins unit also offers a market-leading suite of communication and navigation products like VHF transceiver, VOR/ILS/Marker Beacon receiver and many more.
Prospects of NOC’s Peers
Other defense companies that are likely to enjoy the perks of the expanding C4ISR market have been discussed below.
Lockheed Martin Corporation (LMT - Free Report) : The company provides advanced systems for surveillance, reconnaissance and battle management. One of its key programs includes the Command Control Battle Management Communications, which is the first battle management system capable of integrating across domains.
The company’s long-term (three to five years) earnings growth rate is 4.5%. The Zacks Consensus Estimate for LMT’s 2024 sales indicates year-over-year growth of 5.3%.
General Dynamics Corporation (GD - Free Report) : The company offers advanced communication systems, command and control solutions and ISR platforms that support military forces worldwide. Notably, its subsidiary in Canada offers the Land C4ISR system to the nation’s armed forces to coordinate and conduct modern operations.
The company’s long-term earnings growth rate is 11.8%. The Zacks Consensus Estimate for GD’s 2024 sales indicates year-over-year growth of 13.5%.
Northrop Grumman Corporation (NOC - Free Report) : The company has been delivering end-to-end communications and advanced networking capabilities for the United States and allied military forces operating across multiple battlespace domains. Notably, its autonomous high-altitude, long-endurance systems offer unrivaled situational awareness over land and maritime domains.
The company’s long-term earnings growth rate is 19.1%. The Zacks Consensus Estimate for NOC’s 2024 sales indicates year-over-year growth of 5.3%.
RTX Stock’s Price Movement
Shares of RTX have gained 14.7% in the past three months compared with the industry’s 2.3% growth.
Image Source: Zacks Investment Research
RTX’s Zacks Rank
RTX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.