Raytheon (NYSE:RTN) was one of the biggest winners in last night's announcement of defense contracts awarded by the Pentagon. Out of the 38 contracts awarded, and $7.14 billion in total value, Raytheon claimed four wins -- likely to yield revenues worth $463.4 million.
Raytheon's biggest win of the day was a $235.5 million firm-fixed-price partial-foreign military sales contract to supply 72 radar digital processor upgrade kits for the Phased Array Tracking Radar to Intercept On Target weapon system -- better known by its acronym, the "PATRIOT" air defense system. Out of these kits, 62 will go to the U.S. Army and 10 more will go to allied nations Kuwait and the Netherlands. Deliveries are due March 31, 2017. The Pentagon was not specific as to how the kits would be divided between the two foreign buyers.
The company's other wins included:
- A $163.2 million contract to perform Advanced Medium-Range Air-to-Air Missile (AMRAAM) Program Support and Sustainment (PSAS) work for the U.S. Air Force and Navy, and for the militaries of allied countries Korea, Israel, Saudi Arabia, Singapore, and the United Arab Emirates. Raytheon will provide sustaining engineering, program management, and logistics support aimed at extending the lifespan of the AMRAAM Central Processing Unit, improving the AMRAAM's guidance section, and developing necessary testing equipment. This work should be completed by Jan. 31, 2017.
- A $50.2 million contract modification funding procurement of necessary materials, followed by the fabrication, testing, and delivery to the U.S. Missile Defense Agency of 52 SM-3 Block IB missiles by Feb. 8, 2017.
- A contract modification worth an estimated $14.5 million funding enhancements to and deployment of an Object Classification (OC) database -- also for the U.S. Missile Defense Agency. This contract runs through Oct. 31, 2017.
Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Raytheon Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Trump to Launch "Buy American" Campaign in Support of U.S. Defense Contractors
The Administration reportedly wants to put U.S. military attaches and diplomats to work as a sales force for defense contractors.
Pentagon Admits Trump Bump Won't Happen in 2019, Promises 2020 'Masterpiece'
Investors betting on a surge in defense spending are in for a long wait.
Better Buy: Raytheon (RTN) vs. General Dynamics (GD)
Which defense contractor is the smarter choice?