RTX secures a $186M Navy contract for Aegis weapon system, benefiting from growing defense market

From Nasdaq: 2024-12-02 15:00:00

RTX Corp. secured a $185.8 million contract for the Aegis missile guidance system from the Naval Supply Systems Command Weapon Systems Support. The deal involves repairs and upgrades to key components by December 2026, with a significant portion of work to be done in Chesapeake, VA.

As global defense spending rises, RTX remains a key player in the missile market, supplying advanced systems to the Pentagon and allied nations. Their expertise in designing and manufacturing missile components like the MK 99 Fire Control System and SPY-1D(V) transmitter strengthens national defense capabilities against various threats.

With a projected 5% CAGR in the missile and defense market until 2029, RTX is well-positioned to benefit from strong demand for advanced missile systems. Recent contracts, including Lower Tier Air and Missile Defense System production and Patriot Air Defense systems, have boosted RTX’s defense backlog to $60 billion, indicating future revenue growth.

Other defense companies like Northrop Grumman, Boeing, and Lockheed Martin also stand to gain from the expanding missile market. These companies offer a range of missile defense systems and technologies, with positive growth projections for their sales and earnings in the coming years.

RTX stock has seen a 46.6% increase in the past year, outperforming the industry. With a Zacks Rank #3 (Hold), RTX’s solid position in the missile market and strong financial performance make it an attractive investment option for those looking to capitalize on the growing demand for missile defense systems.



Read more at Nasdaq: RTX Secures a $186M Navy Contract to Support Aegis Weapon System