Jim McAleese, founder and principal atÂ McAleese & Associates and aÂ 2019 Wash100 winner, wrote in the reportÂ the Waltham, Mass.-based defense contractor posted a record backlog of $43B, up 8 percent from the prior year period.
McAleese noted that some of those new orders are the Patriot missile defense system; the National Advanced Surface-to-Air Missile System; and AIM-9X Sidewinder short-range air-to-air missiles.
The proposed merger of Raytheon and United Technologies Corp.Â (NYSE: UTX)Â is expected to close in the first half of 2020 and Thomas Kennedy, chairman and CEO of Raytheon and a 2019 Wash100 winner, identified specific ârevenue synergiesâ from the transaction during the companyâs earnings call, including directed energy and the incorporation of the firmâs âexpeditionary landing systemâ onto new military aircraft.
According to the report, Thomas discussed the U.S. Armyâs Lower Tier Air and Missile Defense Sensor contract. The LTAMDS âcontract structure is something called an âOther Transactionâ â¦ and it does have a requirement for 30% content that can be provided by ânon-traditional contractorsââ¦ We are working with non-traditional contractorsâ¦We are confident in that solutionâ¦Sometime in the September timeframeâ¦the Army has said that they will make that final selection,â he noted.
Raytheon saw its net sales climb 8.1 percent to $7.2B during the second quarter and recorded an earnings per share from continuing operations of $2.92, up 5 percent. The Q2 operating cash flow from continuing operations was $823M.
The company reported an 8 percent increase in Q2 net sales for its missile systems and integrated defense systems segments and a 13 percent sales increase for its space and airborne systems business.
The intelligence, information and services business and Forcepoint posted a 5 percent rise in Q2 revenue.