RTX's Raytheon awards dual-source contracts for solid rocket motor development

Rhea-AI Summary

RTX's Raytheon division has awarded dual-source contracts to Nammo and Northrop Grumman for the initial phase development of MK72 solid rocket motors. The strategic move aims to expand the supplier base and meet growing global demand for defense systems, particularly the Standard Missile program.

Under these contracts, both suppliers will verify design requirements and specifications, completing a Systems Requirements Review to validate design concepts. The initiative focuses on demonstrating the suppliers' capability to execute requirements and production ramp-up before proceeding with further development and qualification phases.

Barbara Borgonovi, president of Naval Power at Raytheon, emphasized that alongside dual sourcing, the company is increasing supply base oversight and making strategic investments to address constraints and accelerate capability delivery.

Positive

• Strategic expansion of supplier base through dual-source contracts
• Enhanced production capacity for critical defense systems
• Risk reduction through supply chain diversification

Negative

• None.

News Market Reaction

-0.11%

1 alert

-0.11% News Effect

On the day this news was published, RTX declined 0.11%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Awards expand supplier base to better meet growing customer demand

TUCSON, Ariz., April 7, 2025 /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, has awarded contracts to Nammo and Northrop Grumman for initial phase work on MK72 solid rocket motor development.

"These contracts are an important step toward increasing capacity and source options to meet global demand for critical defense systems, such as Standard Missile," said Barbara Borgonovi, president of Naval Power at Raytheon. "In addition to dual sourcing, we're doubling down with support and oversight of our supply base and making strategic investments to address constraints and reduce risk so we can deliver more capabilities, faster."

Under the contracts, the companies will verify design requirements and specifications and will complete a Systems Requirements Review to further refine and validate design concepts.

The goal of this initial phase is to demonstrate that these suppliers can successfully execute the requirements and production ramp-up needed before moving forward with further development and qualification. By leveraging both suppliers' expertise and proven capabilities, Raytheon aims to expand the solid rocket motor supplier base and reliably fulfill customer needs.

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.

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

View original content:https://www.prnewswire.com/news-releases/rtxs-raytheon-awards-dual-source-contracts-for-solid-rocket-motor-development-302420827.html

SOURCE RTX

FAQ

What is the purpose of RTX's dual-source contracts for MK72 rocket motors?

The contracts aim to expand supplier base and increase production capacity to meet growing global demand for defense systems, particularly Standard Missile programs.

Which companies received RTX's contracts for solid rocket motor development?

Nammo and Northrop Grumman received contracts for initial phase work on MK72 solid rocket motor development.

What is the initial phase scope for RTX's MK72 rocket motor contracts?

The initial phase involves verifying design requirements, specifications, and completing Systems Requirements Review to validate design concepts.

How will RTX's dual-source strategy improve defense system delivery?

The strategy aims to increase capacity, reduce supply chain risks, and accelerate delivery of defense capabilities through supplier diversification and strategic investments.