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RTX Clinches a $1.7B Deal to Provide Four Patriot Missiles to Spain
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Key Takeaways
RTX's Raytheon unit secured a $1.7B foreign military sales contract to supply Spain with four Patriot systems.
Raytheon's Patriot systems have intercepted hundreds of aerial targets across multiple global conflicts.
Patriot demand remains strong globally, with about 240 fire units delivered worldwide.
RTX Corporation’s (RTX - Free Report) business segment, Raytheon, recently won a $1.7 billion foreign military sales contract to provide Spain with four Patriot air and missile defense systems, including radars, launchers, command-and-control stations and training equipment.
As part of its global Patriot supply chain, Raytheon is partnering with Spanish defense firms, such as Sener, to support the electro-mechanical control systems of the GEM-T missile.
RTX’s Patriot Air & Missile Defense System at a Glance
Patriot is the world’s only combat-proven, ground-based air and missile defense system capable of countering long-range cruise missiles, tactical ballistic missiles and a wide range of air-breathing threats. Supported by an advanced command-and-control architecture, the system has successfully intercepted hundreds of sophisticated aerial targets across multiple global conflicts.
Patriot continues to demonstrate strong performance against advanced threats and large, complex raid scenarios. Demand for the system remains robust, with Germany, the Netherlands and Romania placing additional orders in 2025.
To date, approximately 240 Patriot fire units have been delivered worldwide, underscoring their widespread adoption and critical role in integrated air and missile defense.
Opportunities for RTX and Other Defense Stocks
Intensifying regional conflicts across the globe are prompting nations to strengthen their defense capabilities. As missiles form a critical component of modern defense arsenals, countries are increasing investments in advanced missile systems for both defensive and deterrence purposes.
The Mordor Intelligence firm predicts that the global market for missiles and missile defense systems will witness a CAGR of 4.97% between 2025 and 2030. This outlook is favorable for RTX, which offers a broad portfolio of combat-proven missiles, including the SM-6, National Advanced Surface-to-Air Missile System, Tomahawk, SM-2 and AIM-9X Sidewinder and a few more.
Other defense contractors that are expected to gain from the growth prospects presented by the missiles and missile defense system market are as follows:
The Boeing Company (BA - Free Report) : The company supplies air and missile defense solutions to the United States, allied nations and international partners. Its portfolio includes advanced systems such as Aegis Ballistic Missile Defense and Ground-Based Midcourse Defense.
BA boasts a long-term (three to five years) earnings growth rate of 31.33%. The Zacks Consensus Estimate for 2025 sales stands at $87.32 billion, which calls for an increase of 31.3%.
Northrop Grumman Corp. (NOC - Free Report) : The company offers high-speed, long-range strike weapons like the AARGM-ER, a supersonic, air-launched tactical missile. In addition, it designs and manufactures warheads, fuses, advanced high-speed propulsion systems and other critical missile components.
NOC has a long-term earnings growth rate of 4.19%. The Zacks Consensus Estimate for 2025 sales stands at $41.88 billion, which calls for an increase of 2.1%.
Lockheed Martin Corp. (LMT - Free Report) : The company’s Missiles and Fire Control segment is engaged in the development, production and sustainment of advanced missiles and rocket systems. Its well-known offerings include the PAC-3 missile family, Spike NLOS, the Precision Strike Missile and the Terminal High Altitude Area Defense and a few more.
LMT has a long-term earnings growth rate of 11.94%. The Zacks Consensus Estimate for 2025 sales stands at $74.40 billion, which calls for an increase of 4.7%.
RTX Stock’s Price Movement
In the past six months, RTX shares have risen 31.4% compared with the industry’s growth of 13.9%.
Image: Bigstock
RTX Clinches a $1.7B Deal to Provide Four Patriot Missiles to Spain
Key Takeaways
RTX Corporation’s (RTX - Free Report) business segment, Raytheon, recently won a $1.7 billion foreign military sales contract to provide Spain with four Patriot air and missile defense systems, including radars, launchers, command-and-control stations and training equipment.
As part of its global Patriot supply chain, Raytheon is partnering with Spanish defense firms, such as Sener, to support the electro-mechanical control systems of the GEM-T missile.
RTX’s Patriot Air & Missile Defense System at a Glance
Patriot is the world’s only combat-proven, ground-based air and missile defense system capable of countering long-range cruise missiles, tactical ballistic missiles and a wide range of air-breathing threats. Supported by an advanced command-and-control architecture, the system has successfully intercepted hundreds of sophisticated aerial targets across multiple global conflicts.
Patriot continues to demonstrate strong performance against advanced threats and large, complex raid scenarios. Demand for the system remains robust, with Germany, the Netherlands and Romania placing additional orders in 2025.
To date, approximately 240 Patriot fire units have been delivered worldwide, underscoring their widespread adoption and critical role in integrated air and missile defense.
Opportunities for RTX and Other Defense Stocks
Intensifying regional conflicts across the globe are prompting nations to strengthen their defense capabilities. As missiles form a critical component of modern defense arsenals, countries are increasing investments in advanced missile systems for both defensive and deterrence purposes.
The Mordor Intelligence firm predicts that the global market for missiles and missile defense systems will witness a CAGR of 4.97% between 2025 and 2030. This outlook is favorable for RTX, which offers a broad portfolio of combat-proven missiles, including the SM-6, National Advanced Surface-to-Air Missile System, Tomahawk, SM-2 and AIM-9X Sidewinder and a few more.
Other defense contractors that are expected to gain from the growth prospects presented by the missiles and missile defense system market are as follows:
The Boeing Company (BA - Free Report) : The company supplies air and missile defense solutions to the United States, allied nations and international partners. Its portfolio includes advanced systems such as Aegis Ballistic Missile Defense and Ground-Based Midcourse Defense.
BA boasts a long-term (three to five years) earnings growth rate of 31.33%. The Zacks Consensus Estimate for 2025 sales stands at $87.32 billion, which calls for an increase of 31.3%.
Northrop Grumman Corp. (NOC - Free Report) : The company offers high-speed, long-range strike weapons like the AARGM-ER, a supersonic, air-launched tactical missile. In addition, it designs and manufactures warheads, fuses, advanced high-speed propulsion systems and other critical missile components.
NOC has a long-term earnings growth rate of 4.19%. The Zacks Consensus Estimate for 2025 sales stands at $41.88 billion, which calls for an increase of 2.1%.
Lockheed Martin Corp. (LMT - Free Report) : The company’s Missiles and Fire Control segment is engaged in the development, production and sustainment of advanced missiles and rocket systems. Its well-known offerings include the PAC-3 missile family, Spike NLOS, the Precision Strike Missile and the Terminal High Altitude Area Defense and a few more.
LMT has a long-term earnings growth rate of 11.94%. The Zacks Consensus Estimate for 2025 sales stands at $74.40 billion, which calls for an increase of 4.7%.
RTX Stock’s Price Movement
In the past six months, RTX shares have risen 31.4% compared with the industry’s growth of 13.9%.
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.