RTX's Raytheon awarded U.S. Navy contract for Next Generation Jammer Mid-Band Expansion

Rhea-AI Summary

Raytheon, an RTX business, has secured a $192 million contract from the U.S. Navy to develop the Next Generation Jammer Mid-Band Expansion (NGJ-MBX). This upgrade to the current NGJ-MB system will extend its frequency range to counter additional threats and improve operational effectiveness. The NGJ-MB, including MBX, is a cooperative program with the Royal Australian Air Force and is employed on the EA-18G GROWLER® to target advanced electronic warfare threats.

Barbara Borgonovi, president of Naval Power at Raytheon, emphasized the importance of Offensive Electronic Attack in supporting strike packages and kinetic weapons across various missions. The contract work will be carried out in Dallas, Forest (Michigan), El Segundo (California), and Fort Wayne (Indiana) through 2027.

Positive

• Secured a $192 million contract from the U.S. Navy
• Developing an upgrade to counter new adversary threats
• Cooperative program with the Royal Australian Air Force
• Contract work to be carried out through 2027

Negative

• None.

Insights

Defense Technology Analyst

This $192 million contract for Raytheon to develop the Next Generation Jammer Mid-Band Expansion (NGJ-MBX) is a significant win for RTX. The upgrade extends the frequency range of the current NGJ-MB system, enhancing its ability to counter emerging threats. This development aligns with the increasing importance of electronic warfare in modern military operations.

Key points to consider:

• The contract strengthens RTX's position in the naval electronic warfare market.
• Collaboration with the Royal Australian Air Force adds international value and potential for future exports.
• The timeline through 2027 suggests a steady revenue stream for this project.
• Enhanced capabilities could lead to additional contracts or upgrades for existing systems.

While the contract value is relatively modest compared to RTX's $160 billion market cap, it reinforces the company's technological edge in a critical defense sector. Investors should view this positively as it demonstrates RTX's continued relevance in advanced military systems.

Financial Analyst

This contract award is a positive development for RTX, albeit with a modest financial impact given the company's size. The $192 million contract value represents approximately 0.12% of RTX's market capitalization. However, its strategic importance shouldn't be underestimated.

Financial considerations:

• Revenue recognition likely spread over the contract duration until 2027, providing steady but incremental top-line growth.
• Potential for follow-on contracts or international sales could amplify the long-term financial impact.
• Margins on defense contracts are typically stable, contributing to predictable profitability.
• Investment in R&D for this project may lead to spin-off technologies applicable to other product lines.

While not a game-changer for RTX's financials, this contract reinforces the company's strong position in defense electronics and contributes to a robust order backlog. Investors should view this as a positive indicator of RTX's competitive edge in high-tech defense systems.

Capability upgrade will counter new adversary threats

MCKINNEY, Texas, Oct. 1, 2024 /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, has been awarded a $192 million contract from the U.S. Navy to develop the Next Generation Jammer Mid-Band Expansion (NGJ-MBX), an upgrade to the current Next Generation Jammer Mid-Band (NGJ-MB) system.

This modification will extend the frequency range of the NGJ-MB system to counter additional threats. MBX provides additional capabilities to improve operational effectiveness.

"Offensive Electronic Attack provides a tremendous combat capability supporting strike packages and kinetic weapons across a broad range of missions," said Barbara Borgonovi, president of Naval Power at Raytheon. "With this upgrade, we'll ensure our naval aviators in all theaters are better prepared to counter new adversary threats and provide greater combat power throughout their missions."

NGJ-MB, to include MBX, is a cooperative development and production program with the Royal Australian Air Force. It is an airborne electronic attack system consisting of two pods containing active electronically scanned arrays that radiate in the mid-band frequency range.

The U.S. Navy employs NGJ-MB on the EA-18G GROWLER® to target advanced electronic warfare threats.

Work under this contract will take place in Dallas; Forest, Michigan; El Segundo, California; and Fort Wayne, Indiana through 2027.

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
With more than 185,000 global employees, RTX pushes 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, and developing next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2023 sales of $69 billion, is headquartered in Arlington, Virginia.

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

 

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SOURCE RTX

FAQ

What is the value of the contract awarded to Raytheon (RTX) for the Next Generation Jammer Mid-Band Expansion?

Raytheon, an RTX business, has been awarded a $192 million contract from the U.S. Navy for the Next Generation Jammer Mid-Band Expansion (NGJ-MBX).

What is the purpose of the Next Generation Jammer Mid-Band Expansion (NGJ-MBX) for RTX?

The NGJ-MBX is an upgrade to the current NGJ-MB system that will extend its frequency range to counter additional threats and improve operational effectiveness for naval aviators.

Which aircraft uses the Next Generation Jammer Mid-Band system developed by RTX?

The U.S. Navy employs the Next Generation Jammer Mid-Band (NGJ-MB) system on the EA-18G GROWLER® aircraft to target advanced electronic warfare threats.

When is the contract work for RTX's Next Generation Jammer Mid-Band Expansion expected to be completed?

The contract work for RTX's Next Generation Jammer Mid-Band Expansion is scheduled to be carried out through 2027.