RTX awarded FAA contract to deploy next-generation surveillance radars for National Airspace System

Rhea-AI Summary

RTX (NYSE: RTX) said Collins Aerospace was awarded a $438 million FAA contract on January 5, 2026 to support the Radar System Replacement program, part of the Department of Transportation's Brand New Air Traffic Control System.

Collins will deliver next‑generation cooperative and non‑cooperative radars including the Condor Mk3 and ASR‑XM, qualified through prior test‑site certification, to replace multiple legacy systems with a unified architecture intended to enhance safety, improve efficiency, and reduce long‑term costs. The release notes more than 550 RTX radar systems already operate in the national airspace, providing a foundation for large‑scale modernization.

Positive

• $438 million FAA contract awarded for Radar System Replacement
• More than 550 RTX radar systems already operating in U.S. national airspace
• Condor Mk3 and ASR‑XM qualified through prior test‑site certification
• Replacement of multiple legacy systems with a unified, cost‑effective architecture

Negative

• None.

News Market Reaction

+1.14%

1 alert

+1.14% News Effect

On the day this news was published, RTX gained 1.14%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

FAA radar contract: $438 million Spain Patriot contract: $1.7 billion Romania Patriot order: $168 million +5 more

8 metrics

FAA radar contract $438 million Contract value for Radar System Replacement program with FAA

Spain Patriot contract $1.7 billion Foreign military sales contract to deliver four Patriot fire units to Spain

Romania Patriot order $168 million Foreign military sales contract for Romanian Patriot air defense equipment

Q3 2025 net sales $22.478 billion RTX Q3 2025 net sales from Form 10-Q

Q3 2025 operating profit $2.523B RTX Q3 2025 operating profit from Form 10-Q

Q3 2025 diluted EPS $1.41 RTX Q3 2025 diluted EPS, up from $1.09 year-ago

YTD operating cash flow $6.402B Year-to-date operating cash flow reported in Q3 2025 Form 10-Q

Pension obligations transferred $2.5 billion Gross pension obligations moved to Prudential via pension risk transfer

Market Reality Check

Price: $201.92 Vol: Volume 6,008,728 is 1.41x...

normal vol

$201.92 Last Close

Volume Volume 6,008,728 is 1.41x the 20-day average of 4,256,401, signaling elevated interest ahead of this contract news. normal

Technical Shares at $188.26 are above the $153.52 200-day MA and near the $188.00 52-week high.

Peers on Argus

RTX gained 2.1% while peers were mixed: BA (-0.29%), LMT (+1.52%), GD (+2.2%), H...

RTX gained 2.1% while peers were mixed: BA (-0.29%), LMT (+1.52%), GD (+2.2%), HWM (+0.38%), NOC (+2.92%). This points to a stock-specific reaction to the FAA radar award rather than a broad sector move.

Historical Context

5 past events · Latest: Dec 23 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 23	Patriot contract Spain	Positive	+0.0%	$1.7B Patriot fire units contract for Spain and related equipment.
Dec 22	Anti-jam tech demo	Positive	+2.0%	Collins Aerospace unveiled compact APNT ground solution at Army experiment.
Dec 19	PhantomStrike radar deal	Positive	+2.1%	U.S. Air Force contract to equip autonomous X-62A with PhantomStrike radar.
Dec 19	Romanian Patriot order	Positive	+2.1%	$168M Patriot equipment order from Romania, second within one year.
Dec 09	ADVEW prototype review	Positive	+0.2%	Major review completed for Advanced Electronic Warfare prototype for U.S. Navy.

Pattern Detected

Recent defense and technology contract announcements have generally seen small but positive next-day price reactions.

Recent Company History

Over the past month, RTX has reported several sizable defense and radar-related wins across Raytheon and Collins Aerospace. On Dec 23, 2025, it announced a $1.7 billion Patriot contract with Spain, and on Dec 19, 2025 a $168 million Romanian Patriot order, both with modest positive reactions. Additional updates on PhantomStrike radar and anti-jam technology also saw gains. Today’s $438 million FAA radar contract extends this pattern of radar and airspace modernization awards building on an established backlog.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-09-18

RTX has an effective S-3ASR shelf registration dated 2025-09-18, allowing it to offer various securities, including debt, warrants, common stock, stock purchase contracts and equity units via future prospectus supplements. The filing outlines standard indenture terms and limitations on liens and sale-leaseback transactions. As of the provided data, reported usage count is 0, indicating no takedowns disclosed under this shelf yet.

Market Pulse Summary

This announcement highlights a significant $438 million FAA contract for next-generation surveillanc...

Analysis

This announcement highlights a significant $438 million FAA contract for next-generation surveillance radars, reinforcing RTX’s role in U.S. National Airspace System modernization. It builds on recent radar and air-defense awards, alongside strong Q3 results with net sales of $22.478B. Investors may watch how this award contributes to backlog, execution on large modernization programs, and any future capital-raising via the active S-3ASR shelf registration when evaluating longer-term implications.

Key Terms

cooperative surveillance radar, non-cooperative radar, national airspace system, air traffic controllers, +1 more

5 terms

cooperative surveillance radar technical

"Systems will include the Condor Mk3, a cooperative surveillance radar capable of communicating..."

Cooperative surveillance radar is a system that detects and tracks aircraft or other assets that actively broadcast their identity or position—like a guest at a party wearing a name tag that makes them easy to spot. It matters to investors because cooperative systems tend to be cheaper, more accurate and interoperable than passive sensing, but they depend on widespread use, regulatory rules and procurement cycles, creating markets for hardware, software and services.

non-cooperative radar technical

"and the ASR-XM, a non-cooperative radar that detects aircraft using reflected signals."

Non-cooperative radar is a sensing system that detects, tracks and identifies objects that are not actively transmitting location or identification signals — for example, aircraft, ships or vehicles that do not carry transponders or otherwise “announce” themselves. For investors, it matters because it underpins surveillance, defense and autonomous-vehicle technologies: companies that develop more accurate non-cooperative radar can win contracts, expand market share and face regulatory or privacy scrutiny, much like a security camera that must spot someone in the dark rather than relying on them to press a doorbell.

national airspace system technical

"to support the Radar System Replacement program, a cornerstone of the agency's effort to modernize the U.S. National Airspace System."

The national airspace system is the combined network of airports, air traffic control services, flight routes, navigation aids, and rules that govern how aircraft move across a country — like a nation’s road network and traffic lights but for planes. Investors care because its capacity, safety standards, modernization, and regulatory changes directly affect airlines, cargo operators, airport revenues and supply chains, influencing travel demand, operating costs and profitability.

air traffic controllers technical

"giving air traffic controllers reliable and secure information to support operations."

Air traffic controllers are trained professionals who manage the safe and orderly movement of aircraft on the ground and in the sky, directing takeoffs, landings, and flight paths much like a traffic cop or orchestra conductor guiding vehicles or musicians. For investors, their role matters because controller availability, performance, or disruptions (for example due to staffing shortages, strikes, or regulatory changes) can directly affect airline schedules, airport throughput, costs, and revenue reliability across the aviation sector.

transponders technical

"a cooperative surveillance radar capable of communicating directly with aircraft transponders"

A transponder is a small electronic radio device that automatically receives a signal and sends back a specific reply or relays communications—think of it as a walkie‑talkie that listens for a call and responds with the right information. Investors care because transponders are critical hardware in satellites, aircraft, toll systems and tracking networks, and their availability, performance and regulatory approvals affect a company’s ability to sell services, secure spectrum, and generate steady revenue.

AI-generated analysis. Not financial advice.

Innovative, ready-now technologies will enhance safety, reduce operational complexity and increase efficiency for all airspace users

CEDAR RAPIDS, Iowa, Jan. 5, 2026 /PRNewswire/ -- Collins Aerospace, an RTX (NYSE: RTX) business, has been awarded a $438 million contract by the Federal Aviation Administration to support the Radar System Replacement program, a cornerstone of the agency's effort to modernize the U.S. National Airspace System. The program is a key part of the Department of Transportation's Brand New Air Traffic Control System.

Collins will deliver next-generation cooperative and non-cooperative radar systems, giving air traffic controllers reliable and secure information to support operations. These new radars will simplify operations by replacing multiple legacy systems with a unified, cost-effective and adaptable architecture.

"As a trusted supplier to the FAA for more than 70 years, Collins is ready to rapidly deploy next-generation radar systems that replace outdated technology with a single, modern and interoperable solution," said Nate Boelkins, president of Avionics at Collins Aerospace. "These systems integrate seamlessly with existing infrastructure, enhance safety and efficiency for air traffic controllers, reduce long-term costs and ensure the system is prepared for the future of the National Airspace."  

Systems will include the Condor Mk3, a cooperative surveillance radar capable of communicating directly with aircraft transponders, and the ASR-XM, a non-cooperative radar that detects aircraft using reflected signals. Both are qualified to meet FAA surveillance requirements through prior test-site certification activities.

More than 550 RTX radar systems are already operating within the national airspace today, providing a proven foundation for large-scale modernization. RTX's Condor Mk3 and ASR-XM radar systems provide precise aircraft tracking, especially at lower altitudes.

About Collins Aerospace
Collins Aerospace, an RTX business, is a leader in integrated and intelligent solutions for the global aerospace and defense industry. Our 80,000 employees are dedicated to delivering future-focused technologies to advance sustainable and connected aviation, passenger safety and comfort, mission success, space exploration, and more.

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.

For questions or to schedule an interview, please contact corporatepr@rtx.com

View original content:https://www.prnewswire.com/news-releases/rtx-awarded-faa-contract-to-deploy-next-generation-surveillance-radars-for-national-airspace-system-302653089.html

SOURCE RTX

FAQ

What did RTX announce on January 5, 2026 regarding FAA contracts?

RTX said Collins Aerospace was awarded a $438 million FAA contract to support the Radar System Replacement program.

Which RTX radar models are included in the FAA Radar System Replacement contract?

The contract covers delivery of the Condor Mk3 cooperative radar and the ASR‑XM non‑cooperative radar.

How many RTX radar systems are already operating in the U.S. national airspace?

The release states more than 550 RTX radar systems are already operating in the national airspace.

What is the stated purpose of the RTX radar deployment for the FAA?

To replace multiple legacy systems with a unified architecture that enhances safety, reduces operational complexity, and lowers long‑term costs.

Are the Condor Mk3 and ASR‑XM certified to meet FAA surveillance requirements?

Yes; both models are described as qualified to meet FAA surveillance requirements through prior test‑site certification activities.

How does RTX describe the integration of the new radars with existing infrastructure?

RTX says the systems integrate seamlessly with existing infrastructure to support air traffic controllers and the future National Airspace System.