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RTX's Raytheon and Avio USA expand collaboration to accelerate Mk 104 rocket motor production

1. Raytheon receives $26 million funding for rocket motor engineering work. 2. Funding enhances production capacity for critical solid rocket motors. 3. This project will secure supply chain resilience and meet customer demand. 4. Raytheon's Standard Missile franchise benefits from accelerated development. 5. Collaboration with Avio USA strengthens technological capabilities.

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Why Bullish?

The significant funding for the Mk 104 rocket motor could boost RTX's overall defense production capacity, historically leading to increased revenue and market confidence, especially given past success in similar projects like the Patriot missile program.

How important is it?

The funding announcement is crucial for RTX, as it directly relates to major defense contracts that underpin revenue streams.

Why Long Term?

This investment signifies a long-term commitment to enhancing production efficiency, which may drive sustained growth for RTX as demand for defense solutions expands globally.

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New funding will support accelerated production capacity for critical solid rocket motors , /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, and Avio USA have executed a purchase order for funding of up to $26 million for continued engineering work on the Mk 104 dual-thrust rocket motor to support Raytheon's Standard Missile franchise. The purchase order comes 13 months after the businesses signed a contract for preliminary engineering work on the Mk 104 rocket motor. This project secures funding through the Critical Design Review phase, procurement of long lead material for qualification, and will enable increased and accelerated capacity for solid rocket motor production.   "This purchase order represents an important step in expanding our supply chain to ensure the resilience and availability of the Mk 104 rocket motor," said Barbara Borgonovi, president of Naval Power at Raytheon. "By strategically implementing second sourcing for critical materials, we are not only enhancing our ability to meet customer demand but also strengthening our production capacity for the Standard Missile franchise." Prior to this purchase order, the companies successfully completed both a System Requirements Review and Preliminary Design Review, establishing a solid foundation for the next phases of development and production. "We are proud to continue our work on Mk 104, which is so critical to the United States and our allies," said VADM (Ret.) James Syring, CEO, Avio USA. "We look forward to advancing the motor through full qualification and into production in the future."  "Avio is happy to support Avio USA on the Mk 104 activities, providing its longstanding expertise on SRM engineering, material characterization, laboratory and fire testing, sourcing and motor integration with the aim to ultimately support Raytheon's accelerated ability to deliver to their end customers," said Giulio Ranzo, CEO of Avio SpA. About Raytheon Raytheon, an RTX business, is a leading provider of defense solutions to help the U.S. government, our allies and partners defend their national sovereignty and ensure their security. For more than 100 years, Raytheon has developed new technologies and enhanced existing capabilities in integrated air and missile defense, smart weapons, missiles, advanced sensors and radars, interceptors, space-based systems, hypersonics and missile defense across land, air, sea and space. About RTX RTX is the world's largest aerospace and defense company. With more than 185,000 global employees, we push the limits of technology and science to redefine how we connect and protect our world. Through industry-leading businesses – Collins Aerospace, Pratt & Whitney, and Raytheon – we are advancing aviation, engineering integrated defense systems for operational success, and developing next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2024 sales of more than $80 billion, is headquartered in Arlington, Virginia. Avio USA Inc. is a subsidiary of Avio S.p.A. with its headquarters in Arlington, Virginia. Avio USA is structured to operate in compliance with US security and export-control regulations and is governed by a US-led board of directors. The CEO of Avio USA is retired US Navy Vice Admiral James Syring, former Director of the US Missile Defense Agency. Avio SpA is a leading international group engaged in the development and manufacturing of space launchers as well as solid, liquid and cryogenic propulsion systems. The experience and know-how built up over more than 50 years defines Avio as a leading-edge provider in the space and defense sectors. Avio is present in Italy, France, United States and French Guyana, employing approx. 1,400 highly qualified personnel. Avio is the prime contractor and operator of the Vega launcher, a sub-contractor of the Ariane launcher as well as a major provider of propulsion systems for missile applications. For questions or to schedule an interview, please contact [email protected]. SOURCE RTX WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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