Workflow
RTX Wins a Contract to Supply APY-10 Radar Spares to Canada & Germany
RTXRaytheon Technologies(RTX) ZACKS·2025-04-10 13:10

Core Viewpoint - RTX Corp.'s Raytheon business unit has secured a 15.8millionmodificationcontractforAPY−10radarsystems,whichisexpectedtobecompletedbyMarch2028,indicatingstrongdemandforradartechnologiesamidrisingglobaldefenseinvestments[1][2][3].Group1:ContractDetails−ThecontractinvolvestheprocurementofmaterialsfortheproductionanddeliveryofsevenAPY−10radarsystemsfortheU.S.NavyandsparesforCanadaandGermany,withworktobeexecutedinMcKinney,TX[2].−Thecontractvalueis15.8 million modification contract for APY-10 radar systems, which is expected to be completed by March 2028, indicating strong demand for radar technologies amid rising global defense investments [1][2][3]. Group 1: Contract Details - The contract involves the procurement of materials for the production and delivery of seven APY-10 radar systems for the U.S. Navy and spares for Canada and Germany, with work to be executed in McKinney, TX [2]. - The contract value is 15.8 million and is set to be completed by March 2028 [2]. Group 2: Market Trends - Global geopolitical tensions are driving countries to enhance their defense capabilities, leading to increased investments in radar technologies [3]. - The APY-10 radar is a multi-mission system developed for Boeing's P-8 Poseidon maritime aircraft, supporting various applications such as long-range surface search and target tracking [4]. Group 3: Industry Outlook - The military radar market is projected to grow at a CAGR of 5.2% from 2025 to 2030, driven by rising defense budgets and escalating regional conflicts [5]. - RTX's robust radar portfolio, including combat-proven systems, positions the company well to benefit from this market growth [6]. Group 4: Competitor Analysis - Other major radar manufacturers like Lockheed Martin, L3Harris Technologies, and Northrop Grumman are also expected to benefit from the growth in the military radar market, with each company showcasing strong product portfolios and growth rates [7][9][10][11]. Group 5: Stock Performance - RTX's stock has increased by 26.7% over the past year, significantly outperforming the industry, which has seen a decline of 5.2% [12]. - RTX currently holds a Zacks Rank 2 (Buy), indicating positive market sentiment [13].