RTX's Raytheon to accelerate domestic supply of critical material for commercial and defense applications

Rhea-AI Summary

Raytheon (NYSE: RTX) was awarded a contract by the Air Force Research Laboratory to develop a domestic production capability for thin film lithium niobate (TFLN) wafers, a material used in high‑speed secure communications and advanced sensing.

Raytheon will transfer an ion‑slicing process to US‑based G&H, with production transitioning to G&H in early 2026 for low‑rate initial production to strengthen U.S. supply chain resilience for defense and commercial sectors.

Positive

• Contract award to develop domestic TFLN production
• Planned technology transfer to G&H for manufacturing
• Production transition to G&H in early 2026
• Supports both defense and commercial photonics supply

Negative

• Current supply dominated by foreign sources, posing vulnerability
• Initial low‑rate production limits near‑term domestic capacity

Market Reality Check

Price: $200.06 Vol: Volume 4,938,750 is 0.76x...

normal vol

$200.06 Last Close

Volume Volume 4,938,750 is 0.76x the 20-day average 6,491,227, suggesting muted trading interest pre‑news. normal

Technical Price at $200.06 sits well above the 200-day MA of $163.43 and just 3.11% below the 52-week high $206.48, indicating a longer-term uptrend already in place before this announcement.

Peers on Argus

RTX dipped 0.54% while key aerospace & defense peers like LMT (+2.13%), GD (+1.6...

1 Up

RTX dipped 0.54% while key aerospace & defense peers like LMT (+2.13%), GD (+1.66%), NOC (+0.83%), BA (+0.71%), and HWM (+0.55%) traded higher. Momentum scanner only flagged AVAV up 3.47% without news. This points to stock-specific trading rather than a sector-wide move.

Historical Context

5 past events · Latest: Feb 11 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 11	Defense tech demo	Positive	+0.7%	Coyote Block 3NK system defeated multiple drone swarms in Army exercise.
Feb 10	Defense/5G contract	Positive	-0.5%	Won contract to develop smart spectrum manager for 5G and defense radar coexistence.
Feb 06	Dividend declaration	Positive	-1.2%	Declared quarterly cash dividend of $0.68 per share with long payment history.
Feb 04	Conference appearance	Positive	-3.3%	Chairman and CEO scheduled to present at Citi’s 2026 Global Industrial Tech Conference.
Feb 04	Aircraft engine order	Positive	-3.3%	Vietjet placed additional order for 44 GTF-powered A320neo family aircraft and services.

Pattern Detected

Recent history shows multiple instances where seemingly positive operational or commercial news coincided with negative next-day price moves, indicating a tendency for the stock to sell off or underperform after good news.

Recent Company History

Over the past weeks, RTX has reported several positive developments, including counter‑drone successes on Feb. 11, 2026, a spectrum‑coexistence contract on Feb. 10, and a sizable Vietjet Pratt & Whitney engine order on Feb. 4. It also announced a quarterly dividend of $0.68 per share declared on Feb. 6 and an upcoming conference appearance. Despite these, four of five events saw negative 24‑hour price reactions, suggesting investors often faded good news during this period. Today’s domestic TFLN initiative fits into this stream of defense‑focused technology wins.

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 the company to offer various securities via future prospectus supplements. The shelf remains active through 2028-09-18 with 0 recorded usages so far, indicating capacity for capital raises if management chooses, though no specific amounts or issuances are detailed here.

Market Pulse Summary

This announcement highlights RTX’s push to secure a domestic source of thin film lithium niobate (TF...

Analysis

This announcement highlights RTX’s push to secure a domestic source of thin film lithium niobate (TFLN), a critical material for high‑speed communications and sensing across defense, AI, and data‑center applications. It extends a recent run of contract and technology wins in Raytheon’s portfolio. Investors may watch for follow‑on production milestones in 2026, broader customer adoption of domestically produced TFLN wafers, and how this complements other advanced sensing and spectrum‑management programs in RTX’s backlog.

Key Terms

thin film lithium niobate, photonics, ion slicing

3 terms

thin film lithium niobate technical

"develop a domestic production capability for thin film lithium niobate (TFLN) wafers"

Thin film lithium niobate is a very thin, high-quality crystalline layer of the material lithium niobate placed on a supporting chip to guide and control light on a tiny scale. Think of it as a narrow, super‑responsive lane for light that electronics can steer quickly; it matters to investors because it enables smaller, faster and more energy‑efficient optical components used in high-speed communications, data centers and sensing, which can improve product performance and margins.

photonics technical

"TFLN is used in next-generation photonics for many defense applications"

Photonics is the science and technology of creating, guiding and detecting light, including lasers, optical fibers and sensors; think of it as building and controlling tiny beams of light the way engineers build and route electricity or water through pipes. For investors, photonics matters because it underpins faster communications, precise sensors, advanced manufacturing and medical devices—products and cost savings that can drive revenue growth, competitive advantage and long-term market value.

ion slicing technical

"team will leverage its expertise in ion slicing to assist US-based company G&H"

Ion slicing is a manufacturing method that implants tiny, fast-moving particles into a solid wafer to create a controlled weak plane so a thin, high-quality layer can be separated and transferred to another substrate. Think of it like scoring and peeling a thin sheet from a block without damaging the rest. For investors, it matters because it enables more efficient use of expensive materials, lowers production costs, supports advanced chip and device designs, and can affect yield, capital spending and supply-chain competitiveness.

AI-generated analysis. Not financial advice.

Initiative aims to decrease reliance on foreign markets

ARLINGTON, Va., Feb. 17, 2026 /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, was awarded a contract from the Air Force Research Laboratory to develop a domestic production capability for thin film lithium niobate (TFLN) wafers, a material essential to high‑speed, secure communications and advanced sensing systems.

TFLN is used in next-generation photonics for many defense applications and a broad set of commercial applications, including AI and computing technologies, data centers, and telecommunications. With supply currently dominated by foreign sources, Raytheon aims to ensure the U.S. has a secure, domestic alternative that will be available to the entire defense industrial base and commercial industries.

"Global access to TFLN has become increasingly constrained, with supply consolidation leaving U.S. companies vulnerable to international disruptions," said Colin Whelan, president of Advanced Technology at Raytheon. "Through this effort, Raytheon will stand up an independent U.S. supplier of next‑generation TFLN, building an open, third-party source that can serve a broad range of defense and commercial customers."

Under the contract, Raytheon's Advanced Technology team will leverage its expertise in ion slicing to assist US-based company G&H in developing the process for manufacturing high-quality TFLN wafers. Once the process is established, production will transition to G&H in early 2026, who will manufacture the TFLN wafers at low-rate initial production. Raytheon and G&H will continue to collaborate closely to ensure successful technology transfer and production readiness.

"Establishing G&H as a robust, domestic merchant supplier of thin film lithium niobate is essential for creating next-generation faster and more efficient photonic transmission and sensing systems," said Dr. Stratos Kehayas, president, Photonics at G&H. "G&H's vertically integrated crystal and wafer manufacturing capabilities enable the reliable transition of this technology into U.S.-based production, strengthening supply chain resilience for both defense and commercial applications."

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
With more than 180,000 global employees, we push the limits of technology and science to redefine how we connect and protect our world. With industry-leading capabilities, we advance aviation, engineer integrated defense systems for operational success, and develop next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2025 sales of more than $88 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-to-accelerate-domestic-supply-of-critical-material-for-commercial-and-defense-applications-302686588.html

SOURCE RTX

FAQ

What did Raytheon (RTX) announce about domestic TFLN wafer production on Feb 17, 2026?

Raytheon announced a contract to develop a U.S. production capability for thin film lithium niobate (TFLN) wafers. According to Raytheon, the effort includes ion‑slicing expertise and a transition to G&H for low‑rate initial production in early 2026 to secure supply.

How will the Raytheon (RTX) contract affect U.S. supply of TFLN wafers for defense and commercial use?

The contract aims to create an independent U.S. supplier of TFLN to reduce reliance on foreign sources. According to Raytheon, this will provide a third‑party domestic alternative serving the defense industrial base and commercial industries.

Who will manufacture the TFLN wafers under the Raytheon (RTX) program and when will production begin?

Production will transition to US‑based G&H, which will manufacture TFLN wafers at low‑rate initial production. According to Raytheon, the transition and low‑rate production are planned for early 2026 following technology transfer.

What manufacturing method will Raytheon (RTX) use to develop TFLN wafers for the Air Force Research Laboratory?

Raytheon will leverage its ion‑slicing expertise to develop the TFLN wafer manufacturing process. According to Raytheon, ion slicing will be used during development before transferring the process to G&H for production.

Why is establishing a domestic TFLN supplier important according to Raytheon (RTX)?

Raytheon says domestic supply is needed because global access to TFLN is increasingly constrained and consolidated. According to Raytheon, a U.S. merchant supplier will strengthen supply chain resilience for faster photonic transmission and sensing systems.