RTX awarded $400 million to deliver StormBreaker smart weapons to the U.S. Air Force
- Raytheon awarded a $400 million contract by the U.S. Air Force for the production and delivery of over 1,500 StormBreaker smart weapons
- StormBreaker is a leading air-to-surface, network enabled weapon with multi-effects warhead and tri-mode seeker
- Fielded on F-15E Strike Eagle and F/A-18E/F SuperHornet with testing underway on all variants of the F-35
- StormBreaker completed 28 test drops in 2023
- None.
Insights
The $400 million contract awarded to Raytheon by the U.S. Air Force for the production of more than 1,500 StormBreaker smart weapons represents a significant investment in precision-guided munitions. This contract will have a substantial impact on Raytheon's revenue stream, contributing positively to the company's financial health in the defense sector. The integration of StormBreaker across multiple combat platforms, including the F-15E Strike Eagle and F/A-18E/F SuperHornet and its ongoing testing with the F-35 variants, demonstrate the weapon's versatility and the Department of Defense's confidence in its capabilities.
From an industry perspective, this contract underscores the ongoing trend towards advanced network-enabled weaponry that can operate in diverse conditions, a segment where Raytheon is positioned as a key player. The continued investment in such technology is indicative of the strategic priority given to maintaining technological superiority in modern warfare. For stakeholders, the long-term benefits include potential follow-on contracts and sustained demand for maintenance, upgrades and future enhancements of the StormBreaker system.
The announcement of Raytheon's contract with the U.S. Air Force is likely to have a positive effect on the company's stock (NYSE: RTX) as investors typically respond well to the security of long-term defense contracts. The size of the contract, $400 million, is substantial enough to potentially influence quarterly earnings projections and the company's overall financial outlook. It's important to note that defense contracts often have a ripple effect on the supply chain, benefiting not only the primary contractor but also numerous subcontractors and suppliers involved in the production process.
Investors will be monitoring how Raytheon manages the production scale-up and whether it can achieve the necessary economies of scale to maximize profitability from this contract. Additionally, the long-term nature of defense contracts provides a steady revenue source that can help buffer the company against market volatility in other sectors.
The demand for advanced munitions like the StormBreaker smart weapon is part of a broader market trend towards next-generation warfare technology. The StormBreaker's tri-mode seeker and ability to operate in adverse weather conditions set it apart from older munitions and provide a competitive edge in the market. The successful completion of 28 test drops in 2023 suggests that the weapon is nearing full operational capability, which could lead to increased interest from foreign military sales (FMS) as allies look to upgrade their arsenals.
Additionally, the integration of StormBreaker into multiple aircraft platforms highlights the importance of cross-compatibility in modern military procurement. As defense budgets globally continue to prioritize smart weapons systems, Raytheon's position in the market is likely to strengthen, potentially affecting the competitive dynamics within the defense industry and influencing future contract awards.
StormBreaker is an air-launched, precision-strike standoff weapon that enables the service-members to defeat moving and fixed targets.
"Fielded on two platforms with testing underway for others, StormBreaker has solidified its place as the leading network enabled weapon across the Department of Defense," said Paul Ferraro, president of Air Power at Raytheon. "With this contract, we'll continue to evolve StormBreaker's production to meet the needs of servicemembers for years to come."
StormBreaker is fielded on the F-15E Strike Eagle and F/A-18E/F SuperHornet with testing underway on all variants of the F-35. Across the platforms, StormBreaker completed 28 test drops in 2023.
Click here learn more about the StormBreaker smart weapon.
About Raytheon
Raytheon, an RTX business, is a leading provider of offensive and defense solutions to help the
About RTX
RTX is the world's largest aerospace and defense company. With more than 180,000 global employees, we push the limits of technology and science to redefine how we connect and protect our world. Through industry-leading businesses – Collins Aerospace, Pratt & Whitney, and Raytheon – we are advancing aviation, engineering integrated defense systems for operational success, and developing next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2022 sales of
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SOURCE RTX
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