Raytheon (RTX) Wins $294M Deal for Communications Radios – September 16, 2021
Raytheon Technologies Corp.‘s (RTX – Free report) the business segment, Collins Aerospace, recently signed a modification agreement to purchase 8,085 AN / ARC-210 radios (v). The Air Force Division of the Naval Air Warfare Center, Patuxent River, MD, has awarded the agreement.
Valued at $ 294.1 million, the contract is expected to be completed in September 2024. Under the terms, the aforementioned radios will be installed in more than 400 strategic and tactical onboard, offshore and land (mobile and fixed) platforms.
Contract work will be performed at Cedar Rapids, IA.
The importance of AN / ARC-210 radios
AN / ARC-210 (V) is an evolutionary family of software reprogrammable multi-mode radios that provide the fighter with the UHF / VHF (AM / FM) line of sight, voice / data protection in congestion and Beyond LOS satellite communications. (SATCOM).
More than 40,000 AN / ARC-210 radios are equipped worldwide on more than 200 platforms. This certainly reflects the solid demand that this communication system enjoys around the world.
Raytheon’s Perspectives in Military Communications
Rising geopolitical tensions around the world have forced nations to repeatedly strengthen their defense systems. In particular, military communications, including air-to-air, air-to-ground, underwater, ground and ship communications, are an integral part of the national defense system for the safe and secure transmission of data. Therefore, interoperability and better security of military services are the drivers of growth in the military communications market.
As North America is the largest part of the global military communications market, aided by growing technological advances in the region, Raytheon enjoys a respected position in this market.
In particular, the modernized military communication systems and sophisticated software-defined radio technologies offered by Collins Aerospace provide advanced efficiency in military communications. Also, the company’s military communication systems integrate seamlessly with existing platforms at very low operating costs.
These features must have made Raytheon’s military communications systems the Pentagon’s preferred choice, as evidenced by the last order won.
In the future, the size of the global market for military communications is expected to grow from 33.4 billion dollars in 2020 to 40.6 billion dollars by 2025 at a CAGR of 4%, as predicted by the research firm Markets and Markets . Such solid growth forecasts should boost Raytheon’s best results in the coming days.
How about other defense majors?
The aforementioned prospects for growth in the global military communications market portend well for other defense companies engaged in the communications market. These are:
Lockheed Martin‘s (LMT – Free report) next-generation communication systems include the Whetstone system, designed to extend communication with soldiers beyond conventional networks, the Warfighter Information Network (TIN) system, which provides command, control, communications, computers, intelligence, surveillance and intelligence. (C4ISR) features and a few more.
L3Harris Technologies‘(LHX – Free report) The product portfolio includes SATCOM tactical terminals, RO Tactical Radio, and the RO-Mobile Awareness program, which provide fast, global push-to-talk and visual situational awareness opportunities for users in remote locations.
For 60 years, Northrop Gruman (NIGHT – Free report) is a leader in the design, development and delivery of end-to-end communications and enhanced networking capabilities sought by the US and Allied forces. Battlefield Airborne Communication Node’s leading gateway system (BACN) reached 200,000 hours of combat operational flights in February 2021 since its first deployment to the US Air Force in 2008.
Last year, shares of Raytheon Technologies rose 35.1% compared to industry “with 26% growth.
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Raytheon Technologies currently carries Zacks Rank # 3 (Hold). You can see the full list of today’s shares of Zacks # 1 Rank (Strong Buy) here.