Raytheon Technologies Corp. (NYSE:RTX)
Raytheon Technologies Corp. (NYSE:RTX) recently secured a contract for its APG-79 Active Electronically Scanned Array (AESA) radar system. Naval Supply Systems Command Weapon Systems Support in Philadelphia, Pennsylvania, has made the offer. Despite this, Raytheon stock plunged.
Specifics of the Agreement
The deal is for $19.4 million and won’t be finished until March 2025. Raytheon stock has agreed to purchase 129 parts to supplement the F/APG-79 A-18’s AESA radar system.
The whole of this transaction’s work will be carried out in Forest, Mississippi.
Raytheon and Radar
As geopolitical tensions worldwide have grown rapidly in recent years, industrialized and developing countries have significantly increased their military spending and defense capabilities. Their radars are a crucial aspect of their defensive system. While radars have been used to detect threats and targets since World War II, modern applications have expanded their use. These include ground surveillance, missile control, fire control, air traffic control, moving target indication, weapon placement, and vehicle search.
Increases in defense expenditure by rising countries heightened regional tensions and inter-country conflicts. Growth in the number of missile and aircraft threats has contributed to a dramatic increase in the demand for military radar systems in recent years. Thus, firms like Raytheon, which specialize in radar technology, have benefited from these developments via contract wins.
Raytheon Technologies Corp. (NYSE:RTX) is well-known for its extensive selection of radars, including integrated air and missile defense and ballistic missile radars, observation radars, and air dominance radars. Its battle-tested radars, such as the AN-SPY 6, AN-TPY-2, APG-79, and APG-82, are in high demand throughout the globe’s military radar sector.
Raytheon Stock Future Growth
With a CAGR of 6.3% between 2021 and 2028, the worldwide military radar market is forecast to be worth $22.1 billion. Major radar producers, including Raytheon, Lockheed Martin, L3Harris, and Northrop Grumman, stand to profit from the aforementioned market’s predicted expansion (NOC).
Raytheon stock price fell 4.2% in the previous 12 months, lagging behind the industry’s 8.3% drop.
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