RTX's Unit Wins a Contract for Production of AMRAAM C8 & D3 Variants

Core Viewpoint - RTX Corp.'s unit Raytheon has secured an $18.8 million modification contract for the Advanced Medium Range Air-to-Air Missile (AMRAAM), increasing the total contract value to$2.46 billion, with completion expected by May 31, 2026 [1][2]. Summary by Sections Contract Details - The contract involves the production of C8 and D3 variants of AMRAAM and is awarded by the Air Force Lifecycle Management Center [2]. - The deal includes Foreign Military Sales to multiple countries, including Canada, Taiwan, and the United Kingdom, with work to be executed in Tucson, AZ [3]. Significance of AMRAAM - AMRAAM is a combat-tested missile deployed by 41 nations and integrated into various fighter jets, demonstrating its capabilities through over 4,900 test shots and 13 air-to-air combat victories [4]. Market Demand and Growth Prospects - The defense sector is experiencing high demand for advanced weaponry like AMRAAM, which is expected to boost RTX's revenues in upcoming quarters [5]. - Rising military conflicts and national security concerns are driving growth in the missile defense market, projected to grow at a compound annual growth rate of 5% from 2025 to 2030 [6]. Competitive Landscape - Other defense companies, such as Northrop Grumman, Boeing, and Lockheed Martin, are also positioned to benefit from the expanding missile and missile defense market, with varying long-term earnings growth rates and sales projections [8][10][12]. Stock Performance - RTX shares have increased by 34.1% over the past year, outperforming the industry average growth of 13.8% [13].