We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
RTX Wins $536M Deal to Support US Navy's SPY-6 Family of Radars
Read MoreHide Full Article
Key Takeaways
RTX secured a $536M Navy deal to upgrade SPY-6(V)4 radars on Flight IIA destroyers by May 2026.
The SPY-6 radar defends against multiple threats with greater range, sensitivity and discrimination.
SPY-6 will equip more than 60 Navy ships, highlighting strong demand for RTX's advanced radar systems.
RTX Corporation’s (RTX - Free Report) business segment, Raytheon, recently secured an order worth $536 million from the U.S. Navy to upgrade Flight IIA warships with its SPY-6(v)4 variant of radar.
Per the deal, Raytheon will continue to support the SPY-6 radar family with training, technical services, ship installation, integration and testing, and software upgrades to improve radar capabilities. The contract is projected to be finished by May 2026.
RTX's Proficiency in Producing Superior Radars
Amid rising geopolitical tensions, defense budgets from varied nations have expanded significantly, boosting demand for advanced military weapons, including radar systems.
This must have been ushering in a solid order flow for radar manufacturers like RTX, whose extensive expertise in radar technology applies to a vast range of advanced radar systems for various applications, including air defense, missile defense and maritime surveillance. The latest contract win is a bright example of that.
In particular, the SPY-6 radar family can protect against ballistic missiles, cruise missiles, hostile aircraft and surface ships at the same time. They offer various advantages over conventional radars, including a much longer detection range, higher sensitivity and more accurate discrimination.
Its solid demand is evidenced by the fact that SPY-6 is set to be installed on more than 60 U.S. Navy ships over the next decade.
RTX’s Growth Opportunities
Rising geopolitical tensions, increased defense spending and the need for advanced threat detection are driving demand for military radars. This must have prompted the Mordor Intelligence firm to project a CAGR of 5.2% for the military radar market in the 2025-2030 period. Such growth projections bode well for prominent radar manufacturers like RTX.
RTX’s product portfolio consists of varied radars, such as AN/TPY-2, AN/APG-79, APG-82(V)1, GhostEye MR and a few more, which enjoy solid demand in the global military radar market.
Opportunities for Other Defense Companies
Some other defense contractors that manufacture radars and are thus projected to gain from the expanding global military radar market have been discussed below:
Lockheed Martin Corp. (LMT - Free Report) : The company’s radars are the choice of more than 45 nations across six continents. Its product portfolio consists of varied radars like TPY-4, AN/APY-9 Radar, AN/TPQ-53 Radar System, SPY-7, TPS-77 and Sentinel A4.
LMT has a long-term (three to five years) earnings growth rate of 10.5%. The Zacks Consensus Estimate for the company’s 2025 sales indicates year-over-year growth of 4.6%.
Northrop Grumman Corp. (NOC - Free Report) : The company is a pioneer in manufacturing Active Electronically Scanned Array radars, with more than 60 years of experience. Its diverse product portfolio also includes a handful of radars like AN/ZPY-5 VADER, AN/TPS-80 G/ATOR, AN/SPQ-9B and HAMMR.
Northrop has a long-term earnings growth rate of 3.3%. The Zacks Consensus Estimate for the company’s 2025 sales calls for year-over-year growth of 2.8%.
L3Harris Technologies, Inc. (LHX - Free Report) : The company’s product portfolio includes the SPS-48 land-based surveillance radar, AN/APY-11 Multimode radar, Tactical Air Surveillance radar, AN/SPS-48G Long range 3D surveillance radar and many more.
L3Harris has a long-term earnings growth rate of 12%. The Zacks Consensus Estimate for LHX’s 2025 sales implies an improvement of 1%.
RTX Stock Price Movement
In the past year, shares of RTX have risen 26.8% compared with the industry’s growth of 19.9%.
Image: Bigstock
RTX Wins $536M Deal to Support US Navy's SPY-6 Family of Radars
Key Takeaways
RTX Corporation’s (RTX - Free Report) business segment, Raytheon, recently secured an order worth $536 million from the U.S. Navy to upgrade Flight IIA warships with its SPY-6(v)4 variant of radar.
Per the deal, Raytheon will continue to support the SPY-6 radar family with training, technical services, ship installation, integration and testing, and software upgrades to improve radar capabilities. The contract is projected to be finished by May 2026.
RTX's Proficiency in Producing Superior Radars
Amid rising geopolitical tensions, defense budgets from varied nations have expanded significantly, boosting demand for advanced military weapons, including radar systems.
This must have been ushering in a solid order flow for radar manufacturers like RTX, whose extensive expertise in radar technology applies to a vast range of advanced radar systems for various applications, including air defense, missile defense and maritime surveillance. The latest contract win is a bright example of that.
In particular, the SPY-6 radar family can protect against ballistic missiles, cruise missiles, hostile aircraft and surface ships at the same time. They offer various advantages over conventional radars, including a much longer detection range, higher sensitivity and more accurate discrimination.
Its solid demand is evidenced by the fact that SPY-6 is set to be installed on more than 60 U.S. Navy ships over the next decade.
RTX’s Growth Opportunities
Rising geopolitical tensions, increased defense spending and the need for advanced threat detection are driving demand for military radars. This must have prompted the Mordor Intelligence firm to project a CAGR of 5.2% for the military radar market in the 2025-2030 period. Such growth projections bode well for prominent radar manufacturers like RTX.
RTX’s product portfolio consists of varied radars, such as AN/TPY-2, AN/APG-79, APG-82(V)1, GhostEye MR and a few more, which enjoy solid demand in the global military radar market.
Opportunities for Other Defense Companies
Some other defense contractors that manufacture radars and are thus projected to gain from the expanding global military radar market have been discussed below:
Lockheed Martin Corp. (LMT - Free Report) : The company’s radars are the choice of more than 45 nations across six continents. Its product portfolio consists of varied radars like TPY-4, AN/APY-9 Radar, AN/TPQ-53 Radar System, SPY-7, TPS-77 and Sentinel A4.
LMT has a long-term (three to five years) earnings growth rate of 10.5%. The Zacks Consensus Estimate for the company’s 2025 sales indicates year-over-year growth of 4.6%.
Northrop Grumman Corp. (NOC - Free Report) : The company is a pioneer in manufacturing Active Electronically Scanned Array radars, with more than 60 years of experience. Its diverse product portfolio also includes a handful of radars like AN/ZPY-5 VADER, AN/TPS-80 G/ATOR, AN/SPQ-9B and HAMMR.
Northrop has a long-term earnings growth rate of 3.3%. The Zacks Consensus Estimate for the company’s 2025 sales calls for year-over-year growth of 2.8%.
L3Harris Technologies, Inc. (LHX - Free Report) : The company’s product portfolio includes the SPS-48 land-based surveillance radar, AN/APY-11 Multimode radar, Tactical Air Surveillance radar, AN/SPS-48G Long range 3D surveillance radar and many more.
L3Harris has a long-term earnings growth rate of 12%. The Zacks Consensus Estimate for LHX’s 2025 sales implies an improvement of 1%.
RTX Stock Price Movement
In the past year, shares of RTX have risen 26.8% compared with the industry’s growth of 19.9%.
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.