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

RTX Corp.’s RTX unit Raytheon recently clinched a modification contract involving the Advanced Medium Range Air-to-Air Missile (AMRAAM). The award has been provided by the Air Force Lifecycle Management Center, Robins Air Force Base, GA.

Details of RTX’s Deal

Valued at $18.8 million, the contract is expected to be completed by May 31, 2026. Per the terms of the deal, RTX will produce the C8 and D3 variants of AMRAAM. The latest modification brings the total value of the contract to $2.46 billion.

This contract involves Foreign Military Sales to Canada, Taiwan, Sweden, the Czech Republic, Korea, Kuwait, Japan, Finland, Germany, the United Kingdom, Portugal, Italy, Netherlands, Saudi Arabia, Norway, Belgium, Australia, Turkey, Spain and Lithuania. The work related to this deal will be executed in Tucson, AZ.

Significance of RTX’s AMRAAM

RTX’s AMRAAM, a versatile and combat-tested air dominance missile, is currently deployed by 41 nations. It has been integrated into renowned fighter jets like Boeing’s F-15 and F/A-18, as well as Lockheed Martin’s F-22 Raptor and F-35 Lightning. Its capabilities have been demonstrated in more than 4,900 test shots and more than 13 air-to-air combat victories.

With advanced weaponry like AMRAAM in its portfolio, RTX continues to experience high demand in the defense sector. The recent contract win is a testament to this and is expected to boost the company’s revenues in the coming quarters.

RTX’s Growth Prospects

Rising military conflicts, terrorism and border disputes have led nations to increase their focus on national security, particularly on missile defense systems in recent times, backed by the rapid development of advanced missile technologies over the last decade.

This is likely to have prompted Mordor Intelligence to forecast a compound annual growth rate of 5% for the global missiles and missile defense system market during the 2025-2030 period.

Such massive growth projections offer a strategic advantage to RTX, which has a handful of combat-proven missiles in its product portfolio, like the TOW missile, Guidance Enhanced Missile, SM-2, Tomahawk and a few more, in addition to the AMRAAM.

Prospects for RTX’s Peer Stocks

Other defense companies that are likely to enjoy the perks of the expanding missiles and missile system market have been discussed below:

Northrop Grumman NOC: Northrop Grumman provides high-speed, long-range strike weapons like the AARGM-ER, which is a supersonic, air-launched tactical missile system. It also develops and builds advanced missile defense technology, ranging from command systems to directed energy weapons, advanced munitions and powerful sensors.

The company’s long-term (three to five years) earnings growth rate is 4.2%. The Zacks Consensus Estimate for NOC’s 2025 sales indicates year-over-year growth of 3%.

The Boeing Company BA: It manufactures various missile defense systems, including the Ground-based Midcourse Defense, Aegis Ballistic Missile Defense and Avenger. Boeing-built and supported air and missile defense systems have been protecting its customers for nearly 25 years against threats ranging from intercontinental ballistic missiles to hostile aircraft.

The company has a long-term earnings growth rate of 17.4%. The Zacks Consensus Estimate for BA’s 2025 sales indicates year-over-year growth of 25.7%.

Lockheed Martin LMT: Lockheed Martin’s missile defense program includes the Patriot Advanced Capability-3 and Terminal High-Altitude Area Defense air and missile defense programs. It also manufactures the Multiple Launch Rocket System, the Joint Air-to-Surface Standoff Missile and Javelin tactical missile programs, alongside other tactical missiles.

The company has a long-term earnings growth rate of 10.6%. The Zacks Consensus Estimate for LMT’s 2025 sales indicates year-over-year growth of 4.6%.

RTX Stock’s Price Movement

RTX shares have risen 34.1% in the past year compared with the industry’s 13.8% growth.

RTX’s Zacks Rank

RTX currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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