RTX's Raytheon and Avio USA expand collaboration to accelerate Mk 104 rocket motor production

Rhea-AI Summary

RTX (NYSE: RTX) has announced that its Raytheon business and Avio USA are expanding their collaboration with a new $26 million purchase order for the Mk 104 dual-thrust rocket motor program. The funding, announced 13 months after their initial contract, will support continued engineering work through the Critical Design Review phase and procurement of long-lead materials for qualification.

The collaboration aims to establish a second source for critical materials and enhance production capacity for Raytheon's Standard Missile franchise. The companies have already completed both System Requirements Review and Preliminary Design Review phases, setting the foundation for future development and production.

Positive

• New $26 million funding secured for Mk 104 rocket motor development
• Strategic second sourcing implementation enhances supply chain resilience
• Successful completion of System Requirements Review and Preliminary Design Review phases
• Expansion of production capacity for Standard Missile franchise

Negative

• None.

Insights

Defense Industry Analyst

RTX secures supply chain resilience for Standard Missile program through $26M Avio USA partnership, strengthening defense production capacity.

The $26 million purchase order between Raytheon and Avio USA represents a strategic move to strengthen the defense industrial base for critical missile components. This funding extends their initial engineering collaboration on the Mk 104 dual-thrust rocket motor by 13 months, covering the Critical Design Review phase and procurement of materials for qualification.

The Mk 104 rocket motor is a vital component of Raytheon's Standard Missile franchise, which includes various surface-to-air missile systems used by the U.S. Navy and allied nations. By implementing second-sourcing for these critical components, Raytheon is addressing potential supply chain vulnerabilities that have plagued defense contractors in recent years.

The successful completion of both System Requirements Review and Preliminary Design Reviews indicates the project is progressing according to schedule and meeting technical requirements. This methodical approach reduces development risks while establishing a pathway toward full qualification and production.

This partnership involves not just Avio USA but also leverages expertise from Italian parent company Avio SpA, creating an international technology transfer arrangement that brings established solid rocket motor engineering capabilities to bear on U.S. defense production needs. The involvement of retired Vice Admiral James Syring as Avio USA's CEO adds credibility, given his likely familiarity with naval defense systems requirements.

For RTX, this represents implementation of their supply chain resilience strategy - diversifying suppliers for critical components to ensure production targets can be met even if individual suppliers face disruptions. The defense industry has faced significant production constraints in recent years, making such resilience measures increasingly important for meeting both domestic and allied nations' defense procurement needs.

New funding will support accelerated production capacity for critical solid rocket motors

ARLINGTON, Va., Sept. 24, 2025 /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, and Avio USA have executed a purchase order for funding of up to $26 million for continued engineering work on the Mk 104 dual-thrust rocket motor to support Raytheon's Standard Missile franchise.

The purchase order comes 13 months after the businesses signed a contract for preliminary engineering work on the Mk 104 rocket motor. This project secures funding through the Critical Design Review phase, procurement of long lead material for qualification, and will enable increased and accelerated capacity for solid rocket motor production.  

"This purchase order represents an important step in expanding our supply chain to ensure the resilience and availability of the Mk 104 rocket motor," said Barbara Borgonovi, president of Naval Power at Raytheon. "By strategically implementing second sourcing for critical materials, we are not only enhancing our ability to meet customer demand but also strengthening our production capacity for the Standard Missile franchise."

Prior to this purchase order, the companies successfully completed both a System Requirements Review and Preliminary Design Review, establishing a solid foundation for the next phases of development and production.

"We are proud to continue our work on Mk 104, which is so critical to the United States and our allies," said VADM (Ret.) James Syring, CEO, Avio USA. "We look forward to advancing the motor through full qualification and into production in the future." 

"Avio is happy to support Avio USA on the Mk 104 activities, providing its longstanding expertise on SRM engineering, material characterization, laboratory and fire testing, sourcing and motor integration with the aim to ultimately support Raytheon's accelerated ability to deliver to their end customers," said Giulio Ranzo, CEO of Avio SpA.

About Raytheon
Raytheon, an RTX business, is a leading provider of defense solutions to help the U.S. government, our allies and partners defend their national sovereignty and ensure their security. For more than 100 years, Raytheon has developed new technologies and enhanced existing capabilities in integrated air and missile defense, smart weapons, missiles, advanced sensors and radars, interceptors, space-based systems, hypersonics and missile defense across land, air, sea and space.

About RTX
RTX is the world's largest aerospace and defense company. With more than 185,000 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 2024 sales of more than $80 billion, is headquartered in Arlington, Virginia.

Avio USA Inc. is a subsidiary of Avio S.p.A. with its headquarters in Arlington, Virginia. Avio USA is structured to operate in compliance with US security and export-control regulations and is governed by a US-led board of directors. The CEO of Avio USA is retired US Navy Vice Admiral James Syring, former Director of the US Missile Defense Agency.

Avio SpA is a leading international group engaged in the development and manufacturing of space launchers as well as solid, liquid and cryogenic propulsion systems. The experience and know-how built up over more than 50 years defines Avio as a leading-edge provider in the space and defense sectors. Avio is present in Italy, France, United States and French Guyana, employing approx. 1,400 highly qualified personnel. Avio is the prime contractor and operator of the Vega launcher, a sub-contractor of the Ariane launcher as well as a major provider of propulsion systems for missile applications.

For questions or to schedule an interview, please contact corporatepr@rtx.com.

 

View original content:https://www.prnewswire.com/news-releases/rtxs-raytheon-and-avio-usa-expand-collaboration-to-accelerate-mk-104-rocket-motor-production-302565264.html

SOURCE RTX

FAQ

What is the value of RTX's new purchase order with Avio USA for the Mk 104 rocket motor?

RTX's Raytheon business has executed a $26 million purchase order with Avio USA for continued engineering work on the Mk 104 dual-thrust rocket motor.

What is the purpose of RTX's expanded collaboration with Avio USA?

The collaboration aims to secure second sourcing for critical materials and increase production capacity for the Mk 104 rocket motor used in Raytheon's Standard Missile franchise.

What project milestones have RTX and Avio USA completed for the Mk 104 program?

The companies have successfully completed both the System Requirements Review and Preliminary Design Review phases of the project.

How will the new funding for RTX's Mk 104 program be used?

The funding will support engineering work through Critical Design Review phase, procurement of long-lead materials for qualification, and enable increased production capacity.

When did RTX and Avio USA initially sign their contract for the Mk 104 rocket motor?

The initial contract between RTX's Raytheon and Avio USA was signed 13 months prior to this purchase order announcement.