RTX Wins a Contract to Supply APY-10 Radar Spares to Canada & Germany

RTX Corp.’s RTX Raytheon business unit recently secured a modification contract involving APY-10 radar systems. The award has been offered by the Naval Air Systems Command, Patuxent River, MD.  Details of the DealValued at $15.8 million, the contract is expected to be completed by March 2028. Per the terms of the deal, RTX will procure materials necessary to support the production and delivery of seven APY-10 radar systems for the U.S. Navy. The contract also entails RTX to procure APY-10 radar system spares for the governments of Canada and Germany.  Work related to this contract will be executed in McKinney, TX. What’s Favoring RTX Stock?With the recent surge in global geopolitical tensions, countries worldwide are ramping up their defense capabilities. As radars form an essential component of modern defense systems, this trend has significantly boosted investments in radar technologies. Originally developed during World War II for detecting threats and targets, radars today support a wide range of applications, including ground surveillance, missile guidance, fire control, target tracking and vehicle detection.This growing demand is translating into strong order inflows for radar manufacturers like RTX. The company’s APY-10 radar, for instance, is a multi-mission system developed for Boeing’s P-8 Poseidon maritime aircraft. It supports long-range surface search, target tracking, periscope detection and ship imaging.Looking ahead, the outlook for military radar systems is increasingly optimistic, supported by rising defense budgets, especially in emerging markets, and escalating regional conflicts. These factors are likely to have prompted the Mordor Intelligence firm to project a CAGR of 5.2% for the global military radar market between 2025 and 2030. Such a solid market projection should benefit RTX, which boasts a robust radar portfolio, including integrated air and missile defense systems, ballistic missile radars, surveillance and air dominance radars. Its combat-proven radars, such as the AN-TPY-2, APG-79, AN/SPY-6, APG-82, and APY-10, continue to see strong global demand, which is further evident from the latest contract win.Opportunities for PeersRTX apart, defense contractors that are major radar manufacturers and thus expected to benefit from the growth opportunities offered by the global military radar market are discussed below:Lockheed Martin LMT: Its radars are the choice of more than 45 nations on six continents. The company’s product portfolio includes various radar systems, such as AN/APY-9 radar, airborne ground surveillance radar systems, AN/TPQ-53 radar systems, SPY-7, the long-range discrimination radar, FPS-117 and a few more.Lockheed boasts a long-term earnings growth rate of 10.6%. The Zacks Consensus Estimate for 2025 sales implies an improvement of 4.6% from the 2024 reported figure.L3Harris Technologies LHX: The company manufactures combat-proven radars like the SPS-48, a land-based surveillance radar, the AN/APY-11 Multimode radar, the Tactical Air Surveillance radar, the AN/SPS-48G long-range 3D surveillance radar and many more. Notably, its Vigilant family of software-defined radar electronic support measures solutions is essential for survival and dominance in the electromagnetic threat environment of the modern battlefield.L3Harris boasts a long-term earnings growth rate of 7.3%. The Zacks Consensus Estimate for 2025 sales implies an improvement of 3.3% from the 2024 reported figure.Northrop Grumman NOC: As a pioneer in Active Electronically Scanned Array (“AESA”) radars, NOC has been at the forefront of AESA innovations for more than 60 years. Its diverse product portfolio includes a handful of other radars like the F-35 fire control radar and the Distributed Aperture System, the LONGBOW Fire Control Radar, the Scalable Agile Beam Radar, the APR-39 DV (2) digital radar warning receiver and a few more.Northrop boasts a long-term earnings growth rate of 4.2%. The Zacks Consensus Estimate for 2025 sales implies an improvement of 3% from the 2024 reported figure.RTX Stock Price MovementRTX’s shares have surged 26.7% in the past year against the industry’s 5.2% decline.Image Source: Zacks Investment ResearchRTX’s Zacks RankRTX currently carries a Zacks Rank #2 (Buy). 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Click to get this free report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report L3Harris Technologies Inc (LHX): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks