Raytheon Wins Up to $6.3B Navy Contract for SM-3 Block IB Interceptors
RTX sits 19% above its 52-week low of $155.64.
Summary
Raytheon, an RTX business, won a multi-year U.S. military contract worth up to $6.34 billion to produce and sustain Standard Missile-3 Block IB interceptors. The award supports the Pentagon's effort to rebuild missile-defense inventories and expand munitions production. Work will be performed primarily in Tucson, Arizona, and Huntsville, Alabama. This follows Raytheon's October contract worth up to $24.4 billion for SM-6 interceptors and Lockheed Martin's $58.6 billion Patriot missile contract in July. The deal adds to RTX's growing backlog in missile defense, a segment seeing strong demand from U.S. and allied forces.
Updates
· dpa-AFX — The contract is valued up to $6.3 billion over five years with two additional option years.
- SM-3 IB is a ship- and land-based missile defense interceptor designed to defeat short- to intermediate-range ballistic missiles during the midcourse phase of flight.
- The interceptor is an integral part of the U.S. Navy's extended-range integrated air and missile defense together with SM-3 IIA and the rest of the Standard Missile family.
- The SM-3 IB contract is with the U.S. Department of War.
At the time of this announcement, RTX was trading at $185.00 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $248.4B. The 52-week trading range was $155.64 to $226.88. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.