RTX Ships AN/TPY-2 Radar to the US Missile Defense Agency

RTX Corporation’s RTX business segment, Raytheon, recently shipped the first AN/TPY-2 radar, outfitted with full Gallium Nitride (GaN) technology, to the U.S. Missile Defense Agency. The radar is also configured with the next-generation CX6 high-performance computing software, which enables more precise target discrimination and electronic attack protection.

Such deliveries should bolster RTX’s revenue performance from radars and get duly reflected in its second-quarter 2025 results.

RTX's Expertise in Creating Top-Quality Radars

Amid rising geopolitical tensions, defense budgets from varied nations have expanded significantly, boosting demand for advanced military weapons, including radar systems.

This trend has been benefiting radar makers like RTX in the form of steady orders, given the company’s strong track record in air defense, missile defense and maritime surveillance technologies.

RTX’s AN/TPY-2 missile defense radar plays a key role in national security. Operating in the X band for enhanced clarity, it can detect, track and differentiate ballistic missiles. The radar is available in two versions — one optimized for detecting ascending missiles and the other for guiding interceptors to descending warheads — highlighting its versatility and importance in modern missile defense systems.

RTX Stock’s Growth Potential

Rising geopolitical tensions, increased defense spending, and the need for advanced threat detection are driving demand for military radars. This must have prompted the Mordor Intelligence firm to project a CAGR of 5.2% for the military radar market in the 2025-2030 period. Such growth projections bode well for prominent radar manufacturers like RTX.

With RTX’s product portfolio consisting of varied combat-proven radars like SPY 6, AN/APG-79 and AN/APG-82(V)1 and GhostEye, we may expect the company to continue to make such deliveries (like the latest one) in the coming years as well. This should bolster its future top line.

Opportunities for Other Defense Stocks

Some other defense contractors that are also major radar producers and are projected to gain from the expanding global military radar industry have been discussed below:

Lockheed Martin Corp. LMT: The company’s radars are the choice of more than 45 nations across six continents. Its product portfolio consists of varied radars like TPY-4, AN/APY-9 Radar, AN/TPQ-53 Radar System, SPY-7, TPS-77 and Sentinel A4.

LMT has a long-term (three to five years) earnings growth rate of 10.5%. The Zacks Consensus Estimate for the company’s 2025 sales indicates year-over-year growth of 4.6%.

Northrop Grumman Corp. NOC: The company has been at the forefront of Active Electronically Scanned Array innovations for more than 60 years now. Its diverse product portfolio also includes a handful of radars like AN/ZPY-5 VADER, AN/TPS-80 G/ATOR, AN/SPQ-9B and HAMMR.

Northrop has a long-term earnings growth rate of 3.3%. The Zacks Consensus Estimate for the company’s 2025 sales indicates year-over-year growth of 2.8%.

L3Harris Technologies, Inc. LHX: The company’s product portfolio includes the SPS-48 land-based surveillance radar, AN/APY-11 Multimode radar, Tactical Air Surveillance radar, AN/SPS-48G Long range 3D surveillance radar and many more.  

L3Harris has a long-term earnings growth rate of 12%. The Zacks Consensus Estimate for LHX’s 2025 sales implies an improvement of 1% from the prior-year figure.

RTX Stock Price Movement

In the past six months, shares of RTX have risen 13.8% compared with the industry’s growth of 11.1%.

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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