RTX Secures $736M Deal to Build Upgraded AIM-9X Sidewinder Missiles
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RTX Corporation’s RTX business unit, Raytheon, won a $736-million contract to manufacture the improved Block II variant of its AIM-9X Sidewinder missiles. The award has been offered by the U.S. Navy.
The work related to this deal will be executed in various locations within the continental United States through 2029.
More About RTX’s AIM-9X Sidewinder Missiles
AIM-9X is a sophisticated short-range air-to-air and surface-to-air missile, which is also capable of tracking infrared light. It offers reliable layered defense with ground-launched capabilities, including the National Advanced Surface-to-Air Missile System. The missiles are designed for installation on a variety of modern aircraft, including the F-15C Eagle, F-15E Strike Eagle, F-16 Fighting Falcon, F/A-18 Super Hornet, E/A-18G Growler, F-22 Raptor and all F-35 Joint Strike Fighter variants.
The company’s Block II model has a modified fuze and a digital ignition safety system to upgrade handling and in-flight safety. It has improved electronics, including a lock-on-after-launch capability that uses a new weapon datalink to assist engagements beyond visual range.
The robust demand that RTX’s AIM-9X Sidewinder Missiles enjoy in the missile defense industry is demonstrated by the fact that it is currently being used by more than 30 allied and partner nations of the United States. The latest contract win is yet another bright example of that.
What’s Favoring RTX Stock?
Rapidly increasing geopolitical tensions worldwide, along with heightened regional conflicts in different parts of the globe, like the Middle East and the Russian invasion of Ukraine, have prompted nations to bolster their defense capabilities significantly in recent times. Since missiles constitute a large share of a nation’s defense arsenals, countries are investing heftily in advanced missile systems for deterrence and defense. This has been boosting the demand for technologically advanced missile systems.
To this end, the Mordor Intelligence firm predicts the global market for missiles and missile defense systems to witness a CAGR of 5% between 2024 and 2029. This should benefit RTX, which has a handful of combat-proven missiles in its product portfolio like the TOW missile, Guidance Enhanced Missile, the National Advanced Surface-to-Air Missile System, Tomahawk and Standard Missile 2, in addition to the AIM-9X Sidewinder missiles.
Prospects of RTX’s Peers
As global threats rise, military contractors that are projected to gain from the growth prospects presented by the missiles and missile defense system market are as follows:
The Boeing Company BA: For almost 25 years, the company has been providing air and missile defense systems to the United States, its allies and international partners. Its offerings include the Avenger Air Defense System, Aegis Ballistic Missile Defense and Ground-Based Midcourse Defense.
Boeing boasts a long-term (three to five years) earnings growth rate of 21.3%. The Zacks Consensus Estimate for BA’s 2025 sales implies growth of 22.2% from the 2024 estimated figure.
Lockheed Martin LMT: The company’s Missiles and Fire Control business unit develops, manufactures, and supports advanced missiles and rockets. Some of its renowned products are the PAC-3 family of missiles, M270, RRPR and THAAD.
Lockheed has a long-term earnings growth rate of 4.7%. The Zacks Consensus Estimate for LMT’s 2024 sales indicates growth of 5.2% from the prior-year reported figure.
Northrop Grumman NOC: The company provides high-speed, long-range strike weapons like the AARGM-ER, which is a supersonic, air-launched tactical missile system. It also develops and manufactures warheads, fuses, advanced high-speed propulsion systems and other missile components.
Northrop has a long-term earnings growth rate of 8.7%. The Zacks Consensus Estimate for NOC’s 2024 sales suggests growth of 5.4% from the prior-year reported figure.
