A $2 billion nuclear cruise missile contract is a welcome third-quarter windfall for the defense industry stalwart
Raytheon Missiles & Defense, a division of Raytheon
Technologies, has stood out in recent months.
Raytheon won several missile development contracts in the
third quarter, but orders for existing missiles have continued to dip.
While Raytheon may face some headwinds over the relative
short run, its long-term trajectory still looks solid.
Raytheon Technologies Corp. (RTX, Financial) was a complex
and sprawling organization even before its merger last year with United
Technologies Corp. Even after consolidating or divesting stray business units
post-merger, the combined entity still sports four distinct divisions:
- Raytheon Intelligence & Space
- Raytheon Missiles & Defense
- Pratt & Whitney
- Collins Aerospace
While the commercial aerospace segments that Raytheon
inherited from United Technologies have garnered the lion’s share of analyst
focus lately, I consider the defense side of the business to be more than
deserving of attention. Raytheon Missiles & Defense, in particular, has
proven especially interesting of late and definitely merits a look under the hood
as the company's third quarter winds to an end.
Competing on the cutting edge of missile technology
Raytheon has been at the forefront of rocketry and missile
systems development for nearly eight decades. The company was a pioneer in the
field of guided missile technology, and is credited as the developer of the
first-ever functional missile guidance system. The company has built
continuously on those early successes, and in the process has developed an
enviable reputation and robust track record that continues to stand it up today
as a respected leader and cutting-edge innovator among the top players in the
defense and aerospace sector.
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