RTX's Raytheon to build defensive microwave antenna systems for U.S. military

Rhea-AI Summary

Raytheon (NYSE: RTX) to Design High-Power Microwave Systems to Defeat Airborne Threats

Positive

• Raytheon awarded a $31.3 million contract from the Naval Surface Warfare Center Dahlgren Division
• The contract is part of the Directed Energy Front-line Electromagnetic Neutralization and Defeat (DEFEND) program
• The new high-power microwave antenna systems will use directed energy to defeat airborne threats at the speed of light
• The systems are designed to be rugged and transportable for front-line deployment
• Raytheon has been a leader in the use of high-power microwaves for nearly 80 years

Negative

• None.

Defense Industry Analyst

The recent contract awarded to Raytheon for the development of high-power microwave antenna systems represents a significant advancement in non-kinetic defense technologies. The $31.3 million contract to provide prototypes for the U.S. Navy and Air Force under the DEFEND program underscores the strategic push towards directed energy systems. These systems offer a cost-effective, reliable alternative to traditional defense mechanisms, with the ability to neutralize threats at the speed of light.

From a defense industry perspective, the move towards directed energy solutions reflects a broader trend of modernizing military capabilities to address emerging threats. The investment in such technologies is likely to influence the competitive landscape, prompting innovation and possibly leading to increased defense spending in this sector. As Raytheon is already established in the field of high-power microwaves, this contract could further solidify its market position and potentially lead to future contracts, enhancing long-term revenue streams.

For stakeholders, the implications are twofold. In the short term, there may be increased R&D expenses as the prototypes are developed. However, in the long term, successful implementation could lead to enhanced defense capabilities and stronger relationships with military clients. It is also indicative of the government's commitment to funding next-generation defense systems, which could have positive implications for the defense sector as a whole.

Financial Analyst

The financial implications of Raytheon's contract with the Naval Surface Warfare Center Dahlgren Division are multifaceted. A $31.3 million contract, while not substantial relative to Raytheon's overall revenue, is nonetheless indicative of the company's ongoing involvement in high-priority defense projects. The delivery of prototypes slated for fiscal years 2024 and 2026 suggests a multi-year revenue stream that will contribute to the company's financial stability and growth prospects.

Investors should note that contracts such as these often lead to subsequent deals, provided the prototypes meet performance and cost expectations. The emphasis on cost-effective solutions by Raytheon may appeal to the government's desire to maximize efficiency in defense spending, potentially leading to a favorable position in future contract considerations. However, investors should also be aware of the inherent risks in defense contracting, including technological challenges and shifts in government spending priorities, which could impact project continuation and future revenue.

While the contract itself may not lead to significant stock market movement in the short term, its successful execution could enhance investor confidence in Raytheon's growth trajectory and its ability to secure similar contracts in the future, possibly influencing the stock's long-term performance.

Systems will use directed energy to defeat airborne threats

TUCSON, Ariz., Dec. 19, 2023 /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, will design, build and test two high-power microwave antenna systems that will use directed energy to defeat airborne threats at the speed of light. The systems are designed to be rugged and transportable for front-line deployment.

Under the three-year, $31.3 million contract from the Naval Surface Warfare Center Dahlgren Division, Raytheon will deliver prototype systems to the U.S. Navy and U.S. Air Force as part of the Directed Energy Front-line Electromagnetic Neutralization and Defeat (DEFEND) program.

"Non-kinetic defense systems are a key part of America's national defense strategy," said Colin Whelan, president of Advanced Technology at Raytheon. "The new iterations of Raytheon's high-power microwave systems are cost-effective and reliable solutions that operate at the speed of light – enabling our warfighters to defend against faster and more maneuverable threats."

Raytheon has been a leader in the use of high-power microwaves for nearly 80 years. The new HPM prototype systems build on Raytheon's decades of experience developing capabilities like the Counter-Electronic High Power Microwave Extended Range Air Base Defense, known as CHIMERA.

Work on this contract is being conducted in Tucson, Arizona in partnership with the U.S. Air Force Research Lab, Naval Surface Warfare Center Dahlgren Division and the Undersecretary of Defense for Research and Engineering. Prototypes are expected to be delivered in fiscal years 2024 and 2026.

About Raytheon
Raytheon, an RTX business, is a leading provider of offensive and 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, offensive and defensive cybersecurity tools, 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 180,000 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 2022 sales of $67 billion, is headquartered in Arlington, Virginia.

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

 

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SOURCE RTX

What is the contract amount awarded to Raytheon by the Naval Surface Warfare Center Dahlgren Division?

Raytheon was awarded a $31.3 million contract from the Naval Surface Warfare Center Dahlgren Division

What program is the contract part of?

The contract is part of the Directed Energy Front-line Electromagnetic Neutralization and Defeat (DEFEND) program

What are the new high-power microwave antenna systems designed to do?

The new high-power microwave antenna systems will use directed energy to defeat airborne threats at the speed of light

Where will the work on this contract be conducted?

The work on this contract is being conducted in Tucson, Arizona

Who is the president of Advanced Technology at Raytheon?

Colin Whelan is the president of Advanced Technology at Raytheon