Raytheon (RTN) Gets $200M Missile Defense Agency Contract

Raytheon Company’s (RTN – Analyst Report) business segment, Integrated Defense Systems (“IDS”), has recently received a $200 million modification to an indefinite-delivery/indefinite-quantity (“IDIQ”) contract from Missile Defense Agency, Huntsville, AL.

The total contract value now is $910.5 million, significantly higher than the previous value of $710.5 million.

Per the modified contract, Raytheon will continue to maintain hardware and software, provide engineering and limited modeling and simulation support as well as plan, execute and analyze accepted radars and Ballistic Missile Defense System tests.

The contract work will be performed at Woburn, MA. Ordering period of the contract, which starts from Nov 1, 2015, is expected to continue till Oct 31, 2017.

Raytheon’s IDS mainly provide air and missile defense, large land and sea-based radars and systems for managing command, control, communications, computers and intelligence. It also makes air traffic management systems, sonars, torpedoes and electronic systems for ships.

Apart from focusing on missile defense capabilities, Raytheon works hard on bagging orders in various fields from the U.S. government. Recently, the company was selected by the U.S. Department of Homeland Security to provide full lifecycle development and sustainment support. The company will act as the prime contractor and system integrator for the agency’s Network Security Deployment unit.

Also, it stood out on Pentagon’s daily funding list as of Friday, Sep 25, 2015 securing as many as five contracts for a cumulative amount of $545.5 million. Raytheon Missile Systems alone received three of the five contracts.

Based in Massachusetts, Raytheon is one of the largest aerospace and defense companies in the U.S. with a diversified line of military products including missiles, radars, sensors, surveillance and reconnaissance equipment, communication and information systems, naval systems, air traffic control systems, and technical services.

Raytheon has closed its third-quarter 2015 financials and will release earnings today, Oct 22, 2015. Some other companies in the aerospace and defense space like General Dynamics Corporation (GD – Analyst Report), Huntington Ingalls Industries, Inc. (HII – Snapshot Report) and Northrop Grumman Corp. (NOC – Analyst Report) will also release their third-quarter earnings results soon.