Raytheon Awarded $22.9 Billion 'Tomahawk' Missile Contract by US Navy, Boosting Long-Term Orders and Defense Business
Article excerpt
TradingKey - The United States Navy recently announced an acquisition contract valued at approximately $22.9 billion with Raytheon, a business unit of RTX ( RTX ), for Tomahawk cruise missiles, aimed at accelerating the replenishment of critical munitions and expanding missile production capacity. This large-scale, long-term contract will support Raytheon in hiring personnel, expanding its production lines, and strengthening its supply chain to accelerate the future delivery speed of Tomahawk missiles. This contract comes at a time when the United States is accelerating the replenishment of its missile inventories. In recent years, the conflict between Russia and Ukraine and military operations in the Middle East have continuously depleted US stockpiles of precision-guided weapons, leading the US Government to demand that major defense contractors increase production. As one of the US Navy's primary long-range precision strike weapons, the increased scale of Tomahawk missile purchases indicates that related production demand will remain high for years to come. For RTX, the most direct impact of this contract is to further improve the visibility of long-term revenue and the backlog of orders. At the close of the second quarter of this year, RTX's total order backlog reached approximately $289 billion, up 22% year-on-year, with about $119 billion corresponding to the defense...
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In the second quarter, Raytheon's sales increased by 18% year-on-year to $8.27 billion, driven primarily by demand for missiles such as Patriot, Standard Missile, and AMRAAM.
