Raytheon Stock (NYSE:RTX)
Raytheon stock declined after the company announced that it had just won a contract for its Dual Band Radar products (DBR). Presented by the Naval Sea Systems Command at the nation’s capital.
The work under the contract, worth a total of $160.2 million, is scheduled to be finished by September 2023. Raytheon Technologies, Corp. (NYSE:RTX) will provide design agent and technical engineering services to maintain the DBR systems on CVN-78 and DDG-1000 class ships as per the terms of the agreement.
Options included in the contract have a combined value of $440 million if exercised. Most of the contract’s work will be carried out in Tewksbury, Massachusetts. But despite the excellent news, Raytheon stock is trading in the red.
Dual-Band Radar’s Significance
The DBR program is the first in the U.S. Navy’s fleet to use a single-resource manager to coordinate operations over two frequency bands (S-band and X-band). It combines the detection and tracking capabilities of the S-band Volume Surveillance Radar (VSR) with the X-band AN/SPY-3 Multifunction Radar for an unmatched degree of performance and capability.
For long-term missions, DBR can keep running non-stop with an availability of greater than 95%. Furthermore, DBR is controlled by the command and control level personnel via the Ship Self Defense System. This open-architecture solution combines the ship’s systems through a single business network. It requires neither a dedicated operator nor manned display terminals.
Raytheon Technologies, Corp. (NYSE:RTX) radar system orders have been coming in consistently because of its impressive capabilities and usefulness in military operations. The most recent contract win is a perfect illustration of this. Thus, Raytheon’s stock radar business will benefit.
In the face of escalating geopolitical tensions, countries are bolstering their military might. Considering radar’s increasing significance in military surveillance, there has been a rise in the demand for a reliable system that incorporates the cutting-edge technologies of the next generation of warfare.
Mordor Intelligence projects a 4.5% CAGR for the worldwide military radars market between 2022 and 2031. Raytheon Technologies, Corp.’s (NYSE:RTX) diverse radar offerings, including integrated air and missile defense radars, ballistic missile radars, observation radars, and air dominance radars, point to robust future growth. With so many options in radar system technology, Raytheon stock usually has the upper hand in the military radar system industry.
Featured Image- Megapixl @ Rafaelhenriquepress