RTX Corp.’s RTX business unit, Raytheon, recently clinched a modification contract involving the Standard Missile-6 (SM-6). The award has been offered by the Naval Sea Systems Command, Washington, D.C.

Details of the Deal

Valued at $117.1 million, the contract is expected to be completed by April 2029. Per the terms of the deal, RTX will provide funding for manufacturing, assembly, testing and delivery of SM-6 Tactical All-Up Rounds to support full-rate production requirements.

The majority of work related to this deal will be executed in Tucson, AZ, and East Camden, AK. 

What’s Favoring RTX Stock?

Escalating geopolitical tensions, ongoing military conflicts, rising instances of terrorism, and persistent border disputes have compelled nations worldwide to prioritize national defense strategies. Against this backdrop, a growing need to deter and respond to evolving threats has heightened the focus on missile defense systems.

The rapid advancement of missile technologies over the past decade has further strengthened this trend, enabling more sophisticated and effective defense capabilities. As a result, global demand for missiles—both offensive and defensive—is witnessing a sharp uptick, creating significant growth opportunities for missile manufacturers like RTX and positioning the missile market for robust long-term expansion.

This is likely to have prompted the Mordor Intelligence firm to forecast a compound annual growth rate of 5% for the global missiles and missile defense system market during the 2025-2030 period.

Such solid market growth projections offer a strategic advantage to RTX, which has a handful of combat-proven missiles in its product portfolio, including the TOW missile, Guidance Enhanced Missile, Advanced Medium-Range Air-to-Air Missile, Tomahawk, Standard Missile 2, and several others, in addition to the SM-6. Notably, its Raytheon unit also provides advanced sensors and interceptors to identify, track and defeat threats as part of a layered missile defense.

Prospects for RTX’s Peers

Other defense companies that are likely to enjoy the perks of the expanding global missiles and missile system market have been discussed below:

Northrop Grumman NOC: Northrop Grumman provides high-speed, long-range strike weapons, such as the AARGM-ER, a supersonic, air-launched tactical missile system. It also develops and builds advanced missile defense technology, ranging from command systems to directed energy weapons, advanced munitions and powerful sensors.

The company’s long-term (three to five years) earnings growth rate is 4.2%. The Zacks Consensus Estimate for NOC’s 2025 sales indicates year-over-year growth of 3%.

The Boeing Company (BA): It manufactures various missile defense systems, including the Ground-based Midcourse Defense, Aegis Ballistic Missile Defense and Avenger. Boeing-built and supported air and missile defense systems have been protecting its customers for nearly 25 years against threats ranging from intercontinental ballistic missiles to hostile aircraft.

The company has a long-term earnings growth rate of 17.4%. The Zacks Consensus Estimate for BA’s 2025 sales indicates year-over-year growth of 25.7%.

Lockheed Martin (LMT): Lockheed Martin’s missile defense program includes the Patriot Advanced Capability-3 and Terminal High-Altitude Area Defense air and missile defense programs. It also manufactures the Multiple Launch Rocket System, the Joint Air-to-Surface Standoff Missile and Javelin tactical missile programs alongside other tactical missiles.

The company has a long-term earnings growth rate of 10.6%. The Zacks Consensus Estimate for LMT’s 2025 sales indicates year-over-year growth of 4.6%.

RTX Stock Price Movement

RTX’s shares have risen 15.3% in the past year against the industry’s 0.3% decline.

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RTX’s Zacks Rank

RTX currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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