RTX to Supply Its SPY-6(V)1 Radar for Germany's F127 Frigates

RTX Corporation’s RTX business segment, Raytheon, has been chosen by the German government to supply its SPY-6(V)1 radar for installation on eight of its F127 frigates under a proposed Foreign Military Sales contract with the U.S. Navy.

The deal includes full support and services to customize the radar for the ship’s design, making Germany the first international customer for the SPY-6. Installing the radar on F127 frigates will give the German Navy a multi-mission capability, allowing for faster and more informed decision-making at sea.

This deal not only solidifies RTX’s role in next-generation radar technology but also boosts its global footprint.

RTX: Pioneering Advanced Radar Solutions

Raytheon, a business unit of RTX, designs, develops, and delivers advanced integrated air and missile defense solutions along with state-of-the-art sensors and radar systems across land, air, sea and space domains. Drawing on its extensive radar expertise, the company offers a broad portfolio of advanced radar systems supporting a range of applications, including air defense, missile defense and maritime surveillance.

RTX’s SPY-6(V)1 radar includes four array faces, each containing 37 modular assemblies, delivering uninterrupted 360-degree awareness. It is the world’s most advanced and rigorously tested maritime radar. 

As the U.S. Navy’s premier family of radars, it provides air and missile defense across seven classes of ships, representing a significant leap forward in fleet capability. SPY-6 radars are fully integrated, capable of simultaneously defending against ballistic missiles, cruise missiles, hypersonic threats, hostile aircraft and surface ships. They surpass legacy radars with benefits, including extended detection range, enhanced sensitivity and more precise target discrimination.

RTX’s radar portfolio features systems such as the GhostEye Radar, AN/MPQ-64 Sentinel Radar, AN/TPY-2 and several others, all of which continue to experience strong demand in the global military radar market.

Growth Potential

Per a Mordor Intelligence report, rising geopolitical tensions, higher defense spending and the growing need for advanced threat detection are driving demand for military radars. The report projects the market to expand at a CAGR of 5.15% between 2025 and 2030. Such growth projections bode well for prominent radar manufacturers like RTX.

Other defense contractors that produce radar systems and are expected to benefit from the expanding global military radar market are highlighted below:

Lockheed Martin Corp. LMT: The company’s SPY-7 radar represents the latest in advanced technology, enabling warfighters to make accurate and rapid decisions. It can detect, track, and engage sophisticated ballistic missiles and advanced aerial threats, simultaneously targeting multiple threats with proven interceptors.

LMT boasts a long-term (three to five years) earnings growth rate of 10.3%. The Zacks Consensus Estimate for 2025 sales stands at $74.21 billion, which calls for an increase of 4.5%.

L3Harris Technologies, Inc. LHX: The company’s SPS-48 land-based surveillance radar is a versatile, high-performance system that detects and tracks airborne targets, guides weapon systems, and delivers reliable hazardous weather detection and display capabilities.

LHX boasts a long-term earnings growth rate of 13%. The Zacks Consensus Estimate for 2025 sales stands at $21.75 billion, which calls for an increase of 2%.

Northrop Grumman Corp. NOC: The company is a pioneer in Active Electronically Scanned Array radar technology, with more than 60 years of expertise driving its innovation. Its broad product lineup also features radar systems such as the AN/TPS-80 Ground/Air Task-Oriented Radar, Highly Adaptable Multi-Mission Radar and AN/TPS-78 Advanced Capability Multi-Mode Radar.

NOC has a long-term earnings growth rate of 3.9%. The Zacks Consensus Estimate for 2025 sales stands at $42.16 billion, which calls for an increase of 2.7%.

RTX Stock Price Movement

In the past year, shares of RTX have risen 37.1% compared with the industry’s growth of 23.4%.

RTX’s Zacks Rank

RTX currently carries a Zacks Rank #3 (Hold). 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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