U.S. Army awards RTX's Raytheon TOW contracts for $676 million

Rhea-AI Summary

Raytheon, an RTX business, secured $676 million in contracts from the U.S. Army for the TOW weapon system, comprising a $430 million production contract in FY2023 and $246 million in 2024. The company can manufacture up to 10,000 missiles annually and has delivered over 700,000 TOW systems to date. Recent improvements include modernized fuzing and target detection, demonstrated in successful Fly-To-Buy lot acceptance tests. The TOW system has been used in combat 11,000 times since 2003, with approximately 13,000 missiles provided to Ukraine. The weapon system will remain in service with U.S. and allied forces beyond 2050.

Positive

• Secured $676 million in new U.S. Army contracts
• Production capacity of 10,000 missiles annually
• Successful demonstration of modernized fuzing and target detection improvements
• Strong track record with over 700,000 systems delivered

Negative

• None.

The TOW weapon system will be in service with the U.S. and allied forces beyond 2050

TUCSON, Ariz., Oct. 23, 2024 /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, was awarded $676 million to continue manufacturing the tube-launched, optically-tracked, wireless-guided TOW® weapon system for the U.S. Army. The two separate awards comprise an annual production contract for $430 million in fiscal year 2023 and an additional $246 million award in 2024.

"Our TOW production line is active, and we can manufacture up to 10,000 missiles annually," said Tom Laliberty, president of Land and Air Defense Systems at Raytheon. "This combat-proven effector is ready to meet current and future anti-tank guided missile requirements for the US Army, Marines Corps, and land forces across the globe."

Raytheon continues to improve TOW's design with modernized fuzing and target detection. These upgrades were recently demonstrated in successful Fly-To-Buy lot acceptance tests of the latest TOW 2B variant of the missile.

The modernized fuzing and target detection updates provide warfighters unparalleled capability, maintaining the fastest target engagement time in the segment. This allows TOW to support and excel during complex urban engagements with varied targets of interest while maintaining superior ATGM capability as primary mission.

Additionally, improvements to the overall missile design and packaging will help meet the latest military environmental requirements to support evolving logistical and terrain challenges. This testing milestone ensures TOW users around the world have the latest and most effective weapon system for their deterrence and defensive needs.

To date, Raytheon has delivered more than 700,000 TOW weapon systems to U.S. and international armed forces. Since 2003, the TOW missile system has been used in combat 11,000 times, and the Department of Defense has provided Ukraine with approximately 13,000 TOW missiles.

TOW is compatible with a variety of manned and unmanned vehicles, including the High Mobility Multipurpose Wheeled Vehicle, Stryker anti-tank guided missile vehicle, Bradley Fighting Vehicle, and numerous light armored vehicles. Work under these contracts will take place in Tucson, Arizona.

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 185,000 global employees, RTX pushes 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, and developing next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2023 sales of $69 billion, is headquartered in Arlington, Virginia.

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

 

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SOURCE RTX

FAQ

What is the total value of RTX's new TOW missile contracts with the U.S. Army?

RTX received two contracts totaling $676 million, comprising $430 million in FY2023 and $246 million in 2024.

How many TOW missile systems has RTX (RTX) delivered to date?

RTX has delivered more than 700,000 TOW weapon systems to U.S. and international armed forces.

What is RTX's annual production capacity for TOW missiles?

Raytheon's production line can manufacture up to 10,000 TOW missiles annually.

How many TOW missiles has RTX provided to Ukraine?

The Department of Defense has provided Ukraine with approximately 13,000 TOW missiles.