RTX wins $6.3 billion Pentagon missile contract
RTX said the Pentagon awarded it a $6.3 billion contract to manufacture Standard Missile-3 Block IB interceptor missiles. The work is slated for completion in October 2034.
3 billion contract from the Pentagon to manufacture interceptor missiles, according to a Thursday announcement from the Department of Defense. , factories. The project is set to be completed in October 2034. These missiles are designed to destroy short- and intermediate-range ballistic missiles outside the Earth's atmosphere by colliding with them rather than using an explosive warhead.
The missiles can be fired from both land- and ship-based systems. 5% on Friday, according to MarketSurge. S. military is currently facing a munitions shortage.
The ongoing war in Iran has greatly depleted weapons stockpiles. As a result, the Pentagon has been pressing defense contractors to increase their production capacity so they can make more munitions at a faster pace. However, defense contractors have been hesitant to do so over concerns about the costs of upgrading their factories weighed against levels of ongoing demand. Stock Market Today: Starlink Jumps, Apple Sells Off The Pentagon has also been working to coax big industrial companies like Oshkosh, General Motors and Ford to devote capacity to munitions.
Last month, GM took some promising early steps when it built missile parts for Lockheed Martin. GM made the outer shell casings for PAC-3 interceptor missiles in just 22 days. DEFENSE STOCKS The Aerospace/Defense industry group is down about 11% since the start of the year. Over the past two months, even top performers in the sector have slumped.
The prospect of a peace deal with Iran caused some stocks to fall as it appeared there would be less imminent demand for armaments. Valuations had also been stretched, with RTX and several rival stocks hitting all-time highs in the summer. RTX stock has been foundering lately. 88 in early August.
Shares are up only about 1% so far this year. Other top defense firms are also struggling. Lockheed Martin fell more than 9% in September. GE Aerospace and General Dynamics both erased a year's worth of gains over the past two months.
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