Raytheon, a business unit of RTX Corporation, announced a $1.7 billion contract to supply Spain with four Patriot air‑and‑missile defense systems, including radars, launchers, command‑and‑control stations, and training equipment. The deal represents Spain’s largest Patriot order to date and will add a significant amount of revenue to Raytheon’s defense portfolio.
The contract expands RTX’s international backlog, which stood at $72 billion with 44% of that backlog being international as of the latest earnings report. The new order brings the company’s total backlog closer to the $221 billion record set in Q3 2024, underscoring the firm’s strong order flow and the continued demand for advanced air‑defense capabilities.
Spain’s procurement is part of a broader modernization effort under the “Fuerza 2035” program, aimed at enhancing land, air, and naval capabilities. By adding Patriot systems, Spain strengthens its NATO air‑defense network and signals a commitment to meeting the alliance’s 2% GDP defense spending target.
From a business perspective, the contract boosts Raytheon’s defense segment, which has been a key growth driver for RTX. The company’s defense sales have shown resilience amid geopolitical tensions, and the new order reinforces Raytheon’s competitive advantage in a market where other European nations are also expanding their Patriot fleets.
Management highlighted the strategic importance of the deal, noting that the Patriot system’s proven track record and modular design allow for rapid deployment and future upgrades. The contract also positions Raytheon to capture additional opportunities in the European market, where demand for integrated air‑defense solutions is rising.
Overall, the $1.7 billion contract is a material win that strengthens RTX’s backlog, supports its defense revenue growth, and aligns with Spain’s broader security objectives within NATO. The deal exemplifies the company’s ability to secure large, high‑profile contracts that contribute to long‑term revenue stability.
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