Raytheon secures Army contract for power beaming tech

EL SEGUNDO, Calif. - Raytheon (NYSE:), a business unit of RTX (NYSE: RTX), has secured a contract from the U.S. Army to enhance battlefield operations with directed energy wireless power beaming capabilities. The technology aims to streamline logistics and bolster the security of U.S. troops' positions.

As part of the Department of Defense's Operational Energy Strategy, Raytheon's Advanced Technology team is set to develop advanced wireless power transmitter and receiver technologies. These developments are intended for a long-range demonstration to meet the operational requirements of both manned and unmanned U.S. Army systems.

According to Colin Whelan, president of Advanced Technology at Raytheon, "Wireless power and data can provide enhanced capability in the future manned and unmanned teaming battlespace." He emphasized the importance of such capabilities in highly contested threat environments where operations face significant challenges.

The adoption of wireless power beaming technology is expected to reduce the need for troops to transport additional fuel and batteries, thereby easing logistical burdens, extending operation times, and concealing troop locations. The technology also promises to facilitate the uniform distribution of energy across the battlefield, enabling the seamless capture and delivery of energy to sensor systems without reliance on concentrated fuel depots, which could be targets.

Raytheon's involvement in wireless power transmission dates back to the 1960s, with significant milestones achieved by pioneer William Brown. The company has continued to focus on evolving these technologies to support long-range wireless power applications and integrate them into future defense systems.

The information for this article is based on a press release statement from Raytheon. The company, part of RTX with 2023 sales of $69 billion and over 185,000 global employees, is known for its contributions to defense solutions, including integrated air and missile defense, smart weapons, and advanced sensors, among other technologies.

In other recent news, RTX Corp has been in the spotlight due to a series of significant developments. The United States State Department has approved a $744 million missile sale to Denmark and a $2 billion defense package for Taiwan, with RTX Corp named as the principal contractor in both deals. These sales are part of the U.S.'s efforts to support its allies and enhance political stability and economic progress.

Furthermore, RTX Corp reported strong third-quarter earnings, with an adjusted earnings per share (EPS) of $1.45, exceeding both estimated and consensus figures. This led to an upward revision of its 2024 adjusted EPS guidance to a range of $5.50 to $5.58. The company's revenue also saw an organic increase of 8%.

In addition, RTX Corp secured contracts totaling $676 million for the continued production of the TOW weapon system for the U.S. Army. Analysts have responded positively to these developments. TD Cowen maintained a Buy rating on RTX Corp shares, while Deutsche Bank (ETR:), Susquehanna, and UBS all adjusted their price targets upwards. However, Goldman Sachs maintained a Neutral rating, expressing concerns over certain aspects of RTX Corp's operations. These are recent developments that highlight the company's robust financial performance and strategic advancements.

InvestingPro Insights

Raytheon's recent contract with the U.S. Army for directed energy wireless power beaming capabilities aligns well with the company's strong market position and financial performance. According to InvestingPro data, RTX, Raytheon's parent company, boasts a substantial market capitalization of $164.71 billion, underlining its significant presence in the Aerospace & Defense industry.

The company's focus on innovative technologies like wireless power transmission is reflected in its robust financial metrics. RTX has demonstrated impressive revenue growth, with a 17.82% increase over the last twelve months and a notable 49.21% growth in the most recent quarter. This growth trajectory supports the company's ability to invest in cutting-edge projects such as the one mentioned in the article.

InvestingPro Tips highlight RTX's strong dividend history, having maintained dividend payments for 54 consecutive years. This consistency in shareholder returns, coupled with a current dividend yield of 2.04%, may appeal to investors looking for stable income alongside potential growth from defense technology advancements.

Furthermore, RTX's profitability is evident, with analysts predicting continued profitability this year. The company's EBITDA growth of 32.13% over the last twelve months suggests a solid financial foundation to support its innovative projects and defense contracts.

For readers interested in a deeper analysis, InvestingPro offers 12 additional tips for RTX, providing a comprehensive view of the company's financial health and market position.

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