RTX Corporation’s RTX business segment, Raytheon Missiles & Defense (“RMD”), recently clinched a modification contract for procuring 155mm projectiles. The award has been offered by the Army Contracting Command, Newark, NJ.Valued at $276.5 million, the contract is expected to be completed by Apr 29, 2024. Work related to this deal will be carried out in different locations across the United States. The M982 Excalibur (previously XM982) is a 155 mm extended-range guided artillery shell developed in a collaborative effort between the U.S. Army Research Laboratory (ARL) and the United States Army Armament Research, Development and Engineering Center (ARDEC).
Excalibur 155 mm projectile is an extended range guided artillery shell that accurately extends the reach of .39-caliber artillery to 40 km and .52-caliber artillery to more than 50 km. Its overall precision, coupled with the ability to be integrated on multiple gun systems, enables both the United States and its coalition partners provide overmatch capabilities against land targets in a variety of combat environments, including stationary land targets. This weapon is fully qualified in multiple systems, including the M777, M109 series, M198, the Archer and PzH2000. It’s also currently compatible with the AS90, K9, DENEL G6 and CAESAR 6×6 systems.
Due to its variety of advantages, nations like Sweden, Canada, Australia, Jordan, India and the Netherlands have already chosen the Excalibur precision-guided projectile to address vital security interests, while several other international militaries are finalizing procurement plans. The Excalibur was developed and/or manufactured by prime contractor Raytheon Missiles & Defense, BAE Systems AB (BAE Systems Bofors) and other subs and primes in multiple capacities such as Camber Corporation and Huntington Ingalls Industries. This surely reflects the solid demand that this weapon system enjoys in the artillery market, which in turn leads to inflow of contracts for RTX, the latest contract win being a bright example of that.
Increasing geo-political tensions across the globe have prompted nations to strengthen their defense systems manifold, with artillery forces being one of them. Increasing military investments in the development of new and advanced artillery system are being witnessed lately, thereby bolstering the artillery market’s prospects. Notably, as per the Mordor Intelligence firm’s forecast, the global artillery systems market is projected to witness a CAGR of 7.2% in the 2023-2028 period. This should benefit RTX Corp. with its 155 mm projectile having the capacity to increase precision, minimize collateral damage and reduce the logistical burden for artillery forces.