TUCSON, Ariz. - Defense contractor Raytheon (NYSE:RTN), a business division of RTX (NYSE: RTX), has been awarded a $333 million contract by the U.S. Navy for the production of the Standard Missile-6 (SM-6) Block IA. The missile is designed to offer a multi-faceted defense capability, integrating anti-air, anti-surface warfare, and sea-based terminal ballistic missile defense in a single solution. As a prominent player in the Aerospace & Defense industry with annual revenues of $79 billion, RTX continues to strengthen its market position. InvestingPro analysis indicates the company is currently trading below its Fair Value, suggesting potential upside opportunity.
The SM-6, which operates from U.S. Navy ships, is touted for its versatility, combining offensive and defensive roles to enhance the surface forces' reach and protective measures. Its unique design builds upon the established Standard Missile airframe and propulsion system.
Barbara Borgonovi, president of Naval Power at Raytheon, highlighted the missile's track record and the importance of the contract in providing what she described as an "urgently needed weapon" to the armed forces. The company emphasizes its commitment to maintaining a technological edge in maritime defense.
In a demonstration of its capabilities, the SM-6 successfully intercepted a medium-range ballistic missile target at sea during a test exercise in March 2024, affirming its role in missile defense.
The production of the missiles under this contract is slated to take place across several Raytheon facilities located in Tucson, Ariz., Huntsville, Ala., Andover, Mass., and Dine, N.M. The company anticipates completion of the contract by 2027.
Raytheon's longstanding history in defense spans over a century, with a focus on developing and enhancing technologies in various domains, including missile and air defense, smart weapons, and space-based systems. RTX, the parent company of Raytheon, employs over 185,000 people worldwide and reported sales of $69 billion in 2023. The company maintains a strong financial position with a market capitalization of $153 billion and impressive revenue growth of 17.8% in the last twelve months. With a steady dividend yield of 2.19% and analyst price targets suggesting up to 17% upside potential, RTX continues to attract investor interest. For detailed analysis and additional insights, including 10 more exclusive ProTips, visit InvestingPro.
This information is based on a press release statement from Raytheon.
In other recent news, Raytheon Technologies (NYSE:RTX) Corp, also known as RTX Corp, has been making significant strides in the defense and aerospace industry. The company recently secured a $946 million contract to deliver additional Patriot air and missile defense systems to Romania. This marks the third time Romania has chosen Raytheon's systems to bolster its defense capabilities. Analysts from RBC Capital Markets, Bernstein, and BofA Securities have shown confidence in RTX Corp's potential, upgrading the stock and raising price targets.
In the realm of earnings and revenue, RTX Corp reported strong third-quarter results with an adjusted earnings per share of $1.45 and an 8% increase in organic revenue. The company also revised its 2024 adjusted EPS guidance to a range of $5.50 to $5.58.
In terms of recent developments, Collins Aerospace, a business unit of RTX Corp, introduced an avionics upgrade program for Beechcraft King Air and Hawker aircraft. Pratt & Whitney, another RTX Corp business unit, received FAA certification for its GTF engine to power the Airbus A321XLR. Furthermore, RTX Corp secured a $1.3 billion contract to support the F-35 Lightning II aircraft's propulsion systems and completed a significant phase in developing advanced electronic warfare technology for the U.S. Navy's F/A-18 E/F Super Hornet. These recent developments underline RTX Corp's robust financial performance and strategic advancements.
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