HONEYWELL AWARDED $103M CONTRACT BY U.S. ARMY FOR NEXT-GENERATION RADAR ALTIMETER SYSTEM

Rhea-AI Summary

Honeywell (Nasdaq: HON) has been awarded a $103 million contract by the U.S. Army to provide its Next-Generation APN-209 Radar Altimeter system for various Army aircraft. This modernized system replaces the legacy APN-209, offering key enhancements such as:

• Higher reliability and environmental performance
• Advanced common-core architecture
• Flexible integration options

The contract aligns with Honeywell's focus on the future of aviation. Matt Milas, President of Defense and Space at Honeywell Aerospace Technologies, emphasized the company's commitment to providing cutting-edge technology for military aircraft. Honeywell has delivered over 150,000 altimeters to the U.S. Department of Defense in the past 60 years and plans to introduce the Next Gen APN-209 to international markets in the future.

Positive

• Secured a $103 million contract with the U.S. Army
• Developed an advanced Next-Generation APN-209 Radar Altimeter system
• Improved reliability and performance in challenging weather conditions
• Addressed supply chain risks and component obsolescence
• Potential for international market expansion

Negative

• None.

Insights

Defense Industry Analyst

The $103 million contract awarded to Honeywell by the U.S. Army is a significant win for the company's defense sector. This deal solidifies Honeywell's position as a key supplier of critical avionics equipment to the military. The Next-Generation APN-209 Radar Altimeter system represents a important upgrade from its 1975 predecessor, addressing modern challenges such as supply chain disruptions and component obsolescence.

The contract's value, while substantial, is relatively modest compared to Honeywell's $133 billion market cap. However, its strategic importance lies in maintaining Honeywell's foothold in military aviation technology. The potential for international sales expansion could lead to additional revenue streams in the future.

Investors should note that this contract aligns with Honeywell's focus on the future of aviation, one of its key megatrends. The enhanced reliability and flexible integration options of the new system could lead to broader adoption across various military aircraft platforms, potentially driving long-term growth in the defense segment.

Aerospace Engineer

The Next-Generation APN-209 Radar Altimeter system represents a significant technological leap. Key improvements include:

• Enhanced reliability and performance in adverse weather conditions, important for military operations
• Advanced common-core architecture, leveraging Honeywell's civil radar altimeter technology
• Flexible integration options, catering to diverse aircraft requirements

These advancements address critical operational needs and future-proof the system against obsolescence. The common-core architecture is particularly noteworthy, as it streamlines logistics and maintenance, potentially reducing long-term costs for the Army.

The system's ability to operate in challenging environments and its improved reliability directly contribute to mission success and pilot safety. This technological edge could lead to additional contracts and upgrades for other military aircraft, both domestically and internationally, expanding Honeywell's market share in defense avionics.

PHOENIX, Oct. 14, 2024  /PRNewswire/ -- Honeywell (Nasdaq: HON) has been awarded a $103 million contract by the U.S. Army, through the Defense Logistics Agency, to provide its Next-Generation APN-209 Radar Altimeter (Next Gen APN-209) system on a wide variety of Army aircraft. This contract underscores Honeywell's ongoing commitment to delivering advanced, reliable technology to support U.S. Army missions. It also supports Honeywell's alignment of its portfolio to three powerful megatrends, including the future of aviation.

Honeywell's new APN-209 Radar Altimeter system is a direct replacement for its legacy APN-209, which has been the primary radar altimeter on numerous U.S. Army aircraft since its introduction in 1975. This modernized system offers several key enhancements:

• Higher reliability and environmental performance: The Next Gen APN-209 is engineered to operate with greater reliability and superior performance in challenging weather conditions.
• Advanced common-core architecture: Utilizing Honeywell's common-core radar altimeter architecture from its civil radar altimeter portfolio, the Next Gen APN-209 addresses risks associated with supply chain disruptions, component obsolescence and long-term repair support, improving sustained operational readiness.
• Flexible integration options: The system is available with an integrated altitude indicator or as a standalone transceiver for aircraft that utilize separate displays, offering versatility to meet various aircraft requirements.

"We are honored to continue our support of the U.S. Army with the Next Gen APN-209 Radar Altimeter system," said Matt Milas, President of Defense and Space at Honeywell Aerospace Technologies. "The introduction of our Next Gen APN-209 underscores our decades-long commitment to providing cutting-edge technology that enhances the safety, reliability, and operational capability of military aircraft. Our new advanced radar altimeter system will not only enable us to further support the Army's mission success, but it will also be a capability we intend to extend, where permissible, to our international customers in the coming years."

Honeywell has a longstanding reputation as the primary altimeter supplier to the U.S. Department of Defense, with more than 150,000 delivered over the past 60 years. Honeywell has supplied its legacy altimeters to many international customers and expects to introduce the Next Gen APN-209 in international markets in the years to come.

About Honeywell
Products and services from Honeywell Aerospace Technologies are found on virtually every commercial, defense and space aircraft. The Aerospace Technologies business unit builds aircraft engines, cockpit and cabin electronics, wireless connectivity systems, mechanical components and more. Its hardware and software solutions create more fuel-efficient aircraft, more direct and on-time flights and safer skies and airports. For more information, visit www.honeywell.com/us/en or follow us at @Honeywell_Aero.

Honeywell is an integrated operating company serving a broad range of industries and geographies around the world. Our business is aligned with three powerful megatrends — automation, the future of aviation and energy transition — underpinned by our Honeywell Accelerator operating system and Honeywell Forge IoT platform. As a trusted partner, we help organizations solve the world's toughest, most complex challenges, providing actionable solutions and innovations through our Aerospace Technologies, Industrial Automation, Building Automation and Energy and Sustainability Solutions business segments that help make the world safer and smarter as well as more secure and sustainable. For more news and information on Honeywell, please visit www.honeywell.com/newsroom. 

Contacts:

Honeywell                                                                               
Adam Kress
602-760-6252
Adam.Kress@honeywell.com          

 

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SOURCE Honeywell

FAQ

What is the value of Honeywell's contract with the U.S. Army for the Next-Generation APN-209 Radar Altimeter?

Honeywell (HON) has been awarded a $103 million contract by the U.S. Army for the Next-Generation APN-209 Radar Altimeter system.

What are the key enhancements of Honeywell's Next-Generation APN-209 Radar Altimeter?

The key enhancements include higher reliability and environmental performance, advanced common-core architecture, and flexible integration options.

How many altimeters has Honeywell delivered to the U.S. Department of Defense?

Honeywell has delivered more than 150,000 altimeters to the U.S. Department of Defense over the past 60 years.

Does Honeywell (HON) plan to offer the Next-Generation APN-209 Radar Altimeter to international markets?

Yes, Honeywell plans to introduce the Next Gen APN-209 Radar Altimeter to international markets in the coming years, where permissible.