Raytheon Technologies’ Tucson-based Missiles & Defense division will be producing hundreds of new Stinger missiles under a new $624 million contract with the U.S. Army.
The deal calls for Raytheon (NYSE: RTX) to produce 1,300 of the versatile air defense missiles that can be rapidly deployed by ground troops, as well as provide engineering support, testing and modernization of components.
Stinger missiles have gained notoriety in recent months for their effective use by Ukrainian troops against the Russian invasion of that country launched by President Vladimir Putin in February.
In fact, the missiles’ use in Ukraine is the reason for the current contract, which is being funded through the recently passed Additional Ukraine Supplemental Appropriations Act, which provided more than $40 billion to support Ukraine against Russia and take other steps to defend global democracy.
Raytheon’s mission under the deal includes accelerating production as demand for the missiles has increased and the U.S. military has needed to replenish its stocks that have already been sent to Ukraine.
The company said it is working closely with the Army and its suppliers to handle the growing demand.
“We’re aligned with the U.S. Army on a plan that ensures we fulfill our current foreign military sale order, while replenishing Stingers provided to Ukraine and accelerating production,” Wes Kremer, president of Raytheon Missiles & Defense, said in a statement. “The funding will be used to enhance Stinger’s producibility in an effort to meet the urgent need for replenishment.”
Raytheon also beneficiary of other military deals
The company says the lightweight, self-contained Stinger system gives the ground troops an operational edge against cruise missiles and all classes of aircraft. The system has supersonic speed and uses an agile and highly accurate guidance and control system, the company said.
The contract is the latest of a few recent military deals landed by Raytheon Missiles & Defense. Earlier in May, the company was awarded a $102.69 million contract modification with the U.S. Navy to produce the Over-the-Horizon Weapon System.
That system adds long-range anti-ship and anti-surface capability through a system that includes an operator console, an encanistered missile and a launching system.
Also in May, the Department of Defense announced a $422.66 million fixed-price incentive contract modification for work being done on the hardware for the AN/SPY-6(V) family of radars for the Navy, as well as a $98.38 million modification for a contract to support and repair the AIM-9X Block I, Block II and Block II+ missiles for the Navy, Air Force and foreign customers.
Raytheon’s stock has trended upward since the start of the year, and while not as high as its $104.97 price reached in mid-April, shares closed at $95.12 Tuesday. Track the stock here.
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