Defense contractor Raytheon Company (RTN) has signed a deal worth $1.7 billion to upgrade the Patriot Air and Missile Defense System for Saudi Arabia. Under the Direct Commercial Sales contract signed, Raytheon will advance the missile defense system to the latest Configuration-3.
The contract comprises ground-system hardware, a full training package and support equipment upgrades. Subject to customary U.S. regulatory approvals, Raytheon plans to carry out work under this contract at its Integrated Air Defense Center in Andover, Massachusetts and in Saudi Arabia.
Patriot is an affordable, low-risk and effective air and missile defense system, which is currently used by nearly 12 countries. The newly redesigned Patriot protects against a full range of advanced threats, including aircraft, tactical ballistic missiles, cruise missiles and UAVs.
Raytheon is the prime contractor for both domestic and international Patriot Air and Missile Defense Systems and system integrator for Patriot Advanced Capability-3 missiles. Raytheon had first supplied the combat-proven Patriot system to Saudi Arabia in the 1990s.
With this contract, Raytheon expects to grow its long-standing partnership with the Kingdom of Saudi Arabia. The company has now been in partnership with Saudi Arabia for about 45 years, delivering a number of successful programs for the country.
Raytheon currently retains a Zacks #3 Rank (short-term Hold rating). The company competes with the likes of Lockheed Martin Corporation (LMT) and Northrop Grumman Corporation (NOC).
Based in Massachusetts, Raytheon Company deals with a diversified line of military products, including missiles, radars, sensors, surveillance and reconnaissance equipment, communication and information systems, naval systems, air traffic control systems and technical services.
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