RTX Wins $581M Contract for Next Generation Jammer Mid-Band System

RTX Corporation’s RTX unit, Raytheon, recently clinched a contract for the production and delivery of Next Generation Jammer Mid-Band (NGJ-MB) pod shipsets. The award has been provided by the Naval Air Systems Command, Patuxent River, MD.Details of the Deal Secured by RTXValued at $580.6 million, the contract is expected to be completed by November 2028. Per the terms of the deal, RTX will deliver additional NGJ-MB pods for the Royal Australian Air Force, along with spares and specialized support equipment.The majority of the work related to this contract will be executed in Forest, MS, and McKinney, TX.Significance of RTX’s NGJ-MBRTX’s NGJ-MB is an advanced jamming system that helps control the electromagnetic spectrum by blocking enemy communications and air-defense systems. It allows pilots to target multiple threats at once and operate at longer ranges.These features must have been driving strong demand for RTX’s NGJ-MB system. The latest contract win is yet another example of that.Growth Prospects for RTXRising geopolitical tensions globally have prompted countries to enhance their military capabilities, including electronic warfare (EW) systems, by increasing spending on the production and modernization of varied programs in recent times. During the past decade, the utilization of cutting-edge technology in EW systems has rapidly evolved, making them an essential component of any country's defensive architecture.This is likely to have prompted the Mordor Intelligence firm to forecast a compound annual growth rate of more than 5.1% for the global EW market during the 2025-2030 period.This should benefit EW system manufacturers like RTX in the form of steady order flows from the Pentagon and other U.S. allies, with its NGJ-MB being a state-of-the-art electronic attack system integrated into E/A-18 Growler fighter aircraft.Opportunities for Other Defense StocksOther defense contractors that are expected to reap the benefits of the expanding EW market are listed below:L3Harris Technologies LHX: It manufactures EW systems such as the AN/ALQ-214 (IDECM) F/A-18 Countermeasure System, Viper Shield AN/ALQ-254(V)1 All-digital Electronic Warfare Suite, CREW Vehicle Receiver/Jammer and the Next Generation Jammer-Low Band.L3Harris has a long-term (three to five years) earnings growth rate of 12%. The Zacks Consensus Estimate for LHX’s 2025 sales suggests growth of 1% from the prior-year reported figure.Lockheed Martin LMT: It provides global ground EW solutions to U.S. forces and partner nations through a unique next-generation open architecture product platform and open business model.  Its Advanced Off-Board EW program delivers persistent electronic surveillance and attack capability against naval threats like anti-ship missiles.Lockheed boasts a solid long-term earnings growth rate of 10.5%. The consensus estimate for LMT’s 2025 sales indicates a 4.6% improvement from the prior year's reported figure.Northrop Grumman NOC: The company has been providing Naval Airborne EW solutions for more than 55 years. Some of its EW systems include the ALQ-251 radio frequency countermeasures system and the AN/APR-39 Radar Warning Receiver/Electronic Warfare Management System.NOC boasts a solid long-term earnings growth rate of 3.3%. The Zacks Consensus Estimate for its 2025 sales indicates year-over-year growth of 2.8%.RTX Stock Price MovementIn the past six months, shares of RTX have risen 13.7% compared with the industry’s 11.1% growth.Image Source: Zacks Investment ResearchRTX’s Zacks RankRTX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.0% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report L3Harris Technologies Inc (LHX): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks