RTX's Raytheon selected to streamline production of SPY-6 Transmit/Receive modules

Rhea-AI Summary

Raytheon, an RTX business, has been awarded a Navy ManTech project by Penn State University's Applied Research Laboratory to streamline the production of SPY-6 Transmit/Receive (TR) modules. The project aims to implement manufacturing advancements such as automation, new material sources, and process yield improvements, which are expected to reduce production costs for the U.S. Navy across the SPY-6 radar's life cycle.

SPY-6 is the Navy's family of radars that provides 360-degree integrated air and missile defense for various ship classes. The modular construction of SPY-6 variants, using common hardware and software, enhances reliability and reduces maintenance costs. New SPY-6 radio frequency TR modules are anticipated to be delivered in 2026-2027.

Positive

• Manufacturing advancements expected to reduce production costs for SPY-6 radar
• Potential for cost-savings across the life cycle of the SPY-6 radar for the U.S. Navy
• Manufacturing improvements applicable to other U.S. Navy and Department of Defense programs
• Modular construction of SPY-6 variants enhances reliability and reduces maintenance costs

Negative

• None.

Defense Technology Analyst

This contract highlights RTX's ongoing efforts to enhance the SPY-6 radar system, a critical component in naval defense. The focus on streamlining production of Transmit/Receive (TR) modules is significant for several reasons:

• Cost reduction: Improved manufacturing processes will lead to lower production costs, benefiting the U.S. Navy's budget over the radar's lifecycle.
• Technological advancement: Automation and new materials suggest potential performance improvements in future iterations of the SPY-6.
• Broader implications: These advancements could be applied to other DoD programs, indicating a potential for wider contract opportunities for RTX.

While the immediate financial impact may be , this project positions RTX favorably for future defense contracts and demonstrates their commitment to innovation in a critical defense technology area.

Financial Analyst

The news, while positive, has a immediate financial impact on RTX. Key points to consider:

• No specific contract value is mentioned, suggesting it may not be material to RTX's near-term financials.
• The project's benefits are long-term, with new modules expected in 2026-2027.
• Cost reductions in SPY-6 production could improve profit margins in RTX's defense segment over time.
• Enhanced manufacturing capabilities may lead to increased competitiveness for future contracts.

Investors should view this as a strategic move rather than a significant revenue driver. It reinforces RTX's position in naval defense systems and could contribute to steady, long-term growth in their defense business.

Manufacturing advancements expected to reduce production costs

ANDOVER, Mass., Sept. 17, 2024 /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, has been awarded an Office of Naval Research (ONR) Navy ManTech project from Penn State University Applied Research Laboratory's Electronics Manufacturing Center of Excellence to streamline the production of SPY-6 Transmit/Receive (TR) modules. Manufacturing advancements like automation, new material sources and process yield improvements will result in cost-savings for the U.S. Navy across the life cycle of the SPY-6 radar.

"TR modules are a key component in many of the military's critical sensing systems," said Colin Whelan, president of Advanced Technology at Raytheon. "These manufacturing advancements will greatly benefit future capabilities and can be implemented on other U.S. Navy and Department of Defense programs."

SPY-6 is the U.S. Navy's family of radars that performs air and missile defense on several classes of ships. They enable ships to simultaneously detect, track, and discriminate air, surface and ballistic missile targets, providing a 360-degree integrated air and missile defense for ships.

The four variants of SPY-6 use common hardware and software, and their construction is modular – making it more reliable and less expensive to maintain. Manufacturing advancements will further increase performance while reducing overall production costs.

Work on this contract is being conducted in Andover, Massachusetts. New SPY-6 radio frequency TR modules are expected to be delivered in 2026-2027.

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 purpose of the Navy ManTech project awarded to Raytheon (RTX)?

The project aims to streamline the production of SPY-6 Transmit/Receive (TR) modules, implementing manufacturing advancements to reduce production costs for the U.S. Navy across the SPY-6 radar's life cycle.

When are the new SPY-6 radio frequency TR modules expected to be delivered for RTX?

The new SPY-6 radio frequency TR modules are expected to be delivered in 2026-2027.

What are the key features of the SPY-6 radar system developed by Raytheon (RTX)?

SPY-6 is a family of radars that provides 360-degree integrated air and missile defense for various ship classes. It uses modular construction with common hardware and software, enhancing reliability and reducing maintenance costs.

How will the manufacturing advancements for SPY-6 TR modules benefit RTX and the U.S. Navy?

The manufacturing advancements, including automation and new material sources, are expected to increase performance, reduce production costs, and provide cost-savings for the U.S. Navy across the life cycle of the SPY-6 radar.