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RTX's Raytheon awarded $646 million hardware production and sustainment contract for SPY-6 family of radars

1. Raytheon received a $646 million contract for AN/SPY-6(V) radars. 2. This is the fourth option exercised from a $3 billion contract. 3. The contract increases total radars under procurement to 42 units. 4. Work will occur primarily at Raytheon’s Andover facility through 2028. 5. Initiatives bolster defense capabilities, enhancing U.S. Navy's threat response.

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FAQ

Why Bullish?

The substantial contract and production commitment indicate strong revenue potential. History shows contracts of this nature typically bolster stock performance, e.g., similar contracts boosted RTX's share price following award announcements.

How important is it?

Given the size of the contract and its strategic implications for defense capabilities, the impact on RTX’s revenue is significant. This is likely to positively sway investor sentiment and financial performance.

Why Long Term?

This contract extends through 2028, providing sustained revenue. Previous multi-year contracts have resulted in sustained stock price growth typically realized in the mid-term.

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Production continues for U.S. Navy's most advanced maritime radar , /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, was awarded a $646 million contract to continue producing AN/SPY-6(V) radars for the U.S. Navy. This is the fourth option exercised from the March 2022 hardware, production and sustainment contract that is valued up to $3 billion over five years. Under this contract, the U.S. Navy will receive four additional radars, increasing the total amount of radars under contract for procurement to 42. "SPY-6 enables the U.S. Navy to see further than they've ever seen before, providing sailors with more time to respond to detected threats," said Barbara Borgonovi, president of Naval Power at Raytheon. "This latest contract builds on our decades of experience and technical expertise in developing modular, scalable, and highly maintainable radars." SPY-6 is one of several radar programs designed and manufactured at Raytheon's Radar Development Facility in Andover, Massachusetts, a 30,000-square foot site supporting the production of diverse types of radars for U.S. and allied forces. This vertically integrated and highly automated site is one of the most advanced in the world, with sophisticated radar testing and integration happening around the clock. Majority of the work under this contract will take place at the Andover facility through 2028. 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 RTXRTX 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. 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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