- Raytheon (RTN +1.1%) says it won a new contract from the U.S. Army to build a new radar for the Patriot missile defense system, maintaining its long-term role in what has been one of its best sellers to international customers and the Army.
- RTN says it will receive $364M to deliver the first six units of the Lower Tier Air and Missile Defense Sensor radar, but analysts say the deal ultimately could be worth as much as $5B.
- In one of this year's most closely watched weapons sale competitions, RTN won a three-way contest that also involved Lockheed Martin (LMT -0.3%) and Northrop Grumman (NOC -0.2%).
- The new radar is not due to be fielded before 2022, and while it accounts for a low single-digit percentage of RTN's total sales, analysts say the importance of the broader Patriot system has created an overhang in the company's shares.