logo
Boeing mulls Patriot seeker upgrades amid soaring demand

Boeing mulls Patriot seeker upgrades amid soaring demand

Axios4 days ago
Boeing is exploring new technologies and production efficiencies for the Patriot missile seekers it builds, as global demand for the pricey interceptors skyrockets.
Why it matters: Changes in the formula could reduce costs or boost output. But finding the right mix — and not undercutting performance — is tricky.
Driving the news: In an interview at the Space and Missile Defense Symposium in Alabama, Boeing executive Jim Bryan told Axios ongoing research-and-development efforts include the introduction of "more solid-state components that are, maybe, lower maintenance," plus "smaller packaging."
"The mix of technology in what we have today works very well," he said. "There is some apprehension to mess with a really good recipe."
State of play: Boeing, a subcontractor to Lockheed Martin, has produced more than 5,000 Patriot seekers since 2000.
It hit an all-time high last year, completing more than 500 deliveries.
"The market has been 'how much and how fast,'" Bryan said. "For the Army, we've asked them to give us a target. They say they need infinite now."
Zoom out: Engagements in Eastern Europe and the Middle East, namely the defense of Al Udeid Air Base in Qatar, have elevated the Patriot profile.
Aviation Week on Aug. 6 reported Lockheed was eyeing a "dramatic rise" in interceptor production.
"People want it because it works," Bryan told me. "That weapon is speaking for itself; that weapon is, essentially, selling itself."
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

'A National Security Risk': Boeing Stock (NYSE:BA) Tips Up as Reports Suggest Boeing Itself Could be a Risk to America's Security
'A National Security Risk': Boeing Stock (NYSE:BA) Tips Up as Reports Suggest Boeing Itself Could be a Risk to America's Security

Business Insider

time12 hours ago

  • Business Insider

'A National Security Risk': Boeing Stock (NYSE:BA) Tips Up as Reports Suggest Boeing Itself Could be a Risk to America's Security

Aerospace stock Boeing (BA) might be one of the biggest companies the United States has. One of the only two companies that handles commercial aircraft at any real scale, and a major supplier of national defense tools, the United States clearly counts on Boeing. But is America perhaps too reliant on Boeing? That is the question some ask. Investors did not seem to care, though, as shares tipped up fractionally in Friday afternoon's trading. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. The recent Boeing strike underscored the point, reports noted, with a strike putting delays in a recently-secured $20 billion contract to build the F-47 jet. Of course, it is worth noting that those delays were likely to happen, strike or no, as there has been a supply issue involved in getting the necessary engines for the F-47. But that point is not stopping some from suggesting that, perhaps, Trump himself should be taking more of a hand in the Boeing strike to get the workers back to work. This could be true, though given that the strike is only about two weeks old right now, it is possible that Trump might prefer to let businesses regulate their own issues instead of jumping in to exert pressure right away. But with Boeing currently the fourth-largest Department of Defense contractor, holding Boeing to a different standard could make some sense. The Unpleasant $81 Million Surprise While some are wondering if Boeing and its internal affairs are a national security risk, another point slipped in on Boeing: an $81 million award against Boeing from a court case about trade secrets theft. A United States appeals court reinstated the award against Boeing in favor of Zunum Aero, a startup that handles electric aircraft. Originally, a California judge threw out the jury verdict of $81 million for Boeing. But the 9 th U.S. Circuit Court of Appeals stepped in to put the award back, rejecting the original judge's assertion that the information that Boeing took was not, at the time, subject to trade secret protection. Boeing's next move from here, meanwhile, is unclear. Is Boeing a Good Stock to Buy Right Now? Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 19 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 29.56% rally in its share price over the past year, the average BA price target of $257.05 per share implies 9.14% upside potential.

The U.S. Air Force Just Ordered $7.8 Billion in New Missiles, and These 2 Defense Contractors Will Profit
The U.S. Air Force Just Ordered $7.8 Billion in New Missiles, and These 2 Defense Contractors Will Profit

Yahoo

timea day ago

  • Yahoo

The U.S. Air Force Just Ordered $7.8 Billion in New Missiles, and These 2 Defense Contractors Will Profit

Key Points The U.S. Air Force placed a seven-year supply order for $4.3 billion worth of JASSM and LRASM missiles with Lockheed Martin. The Air Force also ordered six years' worth of AMRAAM missiles from RTX for $3.5 billion. RTX will probably earn a lot more profit on its missiles than Lockheed will. 10 stocks we like better than RTX › "A billion here, a billion there, and pretty soon you're talking real money." -- Senator Everett Dirksen The honorable senator from Illinois went down in the history books with this famous quip about government spending -- which is nowhere truer than in the defense department, where billion-dollar paydays pop up with regularity. Still, when I took a look at the list of Pentagon contracts published on July 31 in particular, I admit my eyes did goggle a little. In just two announcements amounting to fewer than 600 words total, the U.S. government awarded Lockheed Martin (NYSE: LMT) and RTX Corporation (NYSE: RTX) just under $7.8 billion. Big news for LockMart and RTX Both contracts concern the ordering of missiles for the United States Air Force. Lockheed Martin's Missiles and Fire Control division got the larger order: $4.3 billion to upsize a previous contract instructing Lockheed to build and deliver Joint Air-To-Surface Standoff Missiles (JASSM) and Long-Range, Anti-Ship Missiles (LRASM) for use by the USAF and foreign allies Finland, Japan, the Netherlands, and Poland by Jan. 31, 2033. RTX's Raytheon military products division was awarded $3.5 billion to supply Advanced Medium Range Air-to-Air Missiles (AMRAAM) by fiscal third-quarter 2031. In addition to the U.S. Air Force, these missiles are destined for the air forces of a huge host of U.S. allies, covering almost the entire alphabet: Australia, Belgium, Canada, Denmark, Finland, Germany, Hungary, Israel, Japan, Kuwait, Lithuania, the Netherlands, Poland, Spain, Sweden, Switzerland, Taiwan, Ukraine, and the United Kingdom. How to put big numbers in context Are you impressed yet? Well, before getting too excited about the large numbers being bandied about, make sure to note the completion dates for both contracts. Lockheed Martin's LRASM/JASSM sales, for example, run through early 2033. That means you need to spread out the $4.3 billion contract value over more than seven years to get a sense of how much annual revenue this contract will contribute, and whether it's enough to "move the needle" on Lockheed stock. Here's the answer: It bumps up Lockheed Martin's $71 billion-a-year revenue stream to perhaps $71.7 million -- an increase of less than 1%. Similarly, RTX's $3.5 billion win spreads across six years. That works out to less than $600 million a year in extra orders. On RTX's $84 billion revenue stream, it's an increase of at most 0.7%. Plus, bear in mind that the Pentagon was already buying missiles from both these companies. The new orders -- in large part -- will simply replenish backlog and continue revenues that LockMart and RTX were already collecting. Viewed in that context, it's entirely possible that the ongoing increase in annual revenue for each company will be less than 1%... or even less than 0.7%. What this means for investors All this said, and the caveats notwithstanding, we're still "talking real money" here -- even if it's not necessarily "move the needle" amounts of money. What's surprising to me is how much better RTX has been lately at turning revenue money into GAAP profits. According to data from S&P Global Market Intelligence, Lockheed Martin's operating profit margin in its Missiles and Fire Control division is currently an anemic 4.2%, making it by far the least profitable of Lockheed's four main business divisions. RTX's Raytheon division, in contrast, earns 9.7% operating margins on its sales -- twice Lockheed MFC's margin. This makes Raytheon RTX's second most profitable business division after airplane parts division Collins Aerospace, despite Raytheon being the company's smallest division by revenue. Strange as it may sound, while RTX won the smaller of the two (still very large) missile contracts last week, measured both by absolute value and by value as a percentage of total sales, RTX is almost certain to earn the most profit from its Pentagon contract. There's a reason why RTX stock sells for 2.5 times annual sales, while Lockheed stock is valued relatively less, at just 1.4x sales. And RTX's superior profit margin is that reason. Should you buy stock in RTX right now? Before you buy stock in RTX, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and RTX wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $663,630!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,115,695!* Now, it's worth noting Stock Advisor's total average return is 1,071% — a market-crushing outperformance compared to 185% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Lockheed Martin and RTX. The Motley Fool has a disclosure policy. The U.S. Air Force Just Ordered $7.8 Billion in New Missiles, and These 2 Defense Contractors Will Profit was originally published by The Motley Fool

Airbus Is About to Eclipse a Record That Boeing Held for Decades
Airbus Is About to Eclipse a Record That Boeing Held for Decades

Yahoo

timea day ago

  • Yahoo

Airbus Is About to Eclipse a Record That Boeing Held for Decades

(Bloomberg) -- In 1981, the year Airbus SE announced it would build a new single-aisle jetliner to take on Boeing Co., the 737 ruled the roost. The US-made narrowbody, already in use for more than a decade, had reshaped the airline industry by making shorter routes cheaper and more profitable to operate. By 1988, when Airbus began producing its upstart A320, Boeing had built a formidable lead by delivering some 1,500 of its cigar-shaped best-seller. The US-Canadian Road Safety Gap Is Getting Wider Festivals and Parades Are Canceled Amid US Immigration Anxiety A Photographer's Pipe Dream: Capturing New York's Vast Water System To Head Off Severe Storm Surges, Nova Scotia Invests in 'Living Shorelines' Five Years After Black Lives Matter, Brussels' Colonial Statues Remain It's taken the better part of four decades, but Airbus has finally caught up: The A320 series is poised to overtake its US competitor as the most-delivered commercial airliner in history, according to aviation consultancy Cirium. As of early August, Airbus had winnowed the gap to just 20 units, with 12,155 lifetime A320-family shipments, according to the data. That difference is likely to disappear as soon as next month. 'Did anyone back then expect it could become number one – and on such high production volumes?' Max Kingsley-Jones, head of advisory at Cirium Ascend, wrote of the A320 in a recent social-media post. 'I certainly didn't, and nor probably did Airbus.' The A320's success mirrors the European planemaker's decades-long rise from fledgling planemaker to serious contender, and finally Boeing's better. By the early 2000s, annual deliveries of the A320 and its derivatives had surpassed the 737 family; total orders eclipsed the Boeing jet in 2019. But the 737 stubbornly remained the most-delivered commercial aircraft of all time. At the outset, Airbus faced an uphill battle. The European planemaker, an assemblage of aerospace manufacturers formed in 1970 with backing from European governments, didn't yet offer a full aircraft lineup. Infighting hindered everything from product planning to manufacturing, and leadership decisions had to finely balance French and German commercial and political interests. Yet it was clear even then that Airbus needed a presence in the narrowbody segment to firmly establish itself as Boeing's top rival. Those aircraft are by far the most widely flown category in commercial aviation, typically connecting city pairs on shorter routes. Higher fuel costs and the deregulation of the US aviation industry in the late 1970s had given the European planemaker an opening with American airline executives, who clamored for an all-new single-aisle, according to a history of Airbus written by journalist Nicola Clark. To set the A320 apart, Airbus took some risks. It selected digital fly-by-wire controls that saved weight over traditional hydraulic systems, and gave pilots a side-stick at their right or left hand instead of a centrally mounted yoke. The aircraft also sat higher off the ground than the 737 and came with a choice of two engines, giving customers greater flexibility. Airbus's gamble paid off. Today, the A320 and 737 make up nearly half of the global passenger jet fleet in service. And the A320's success contrasts with strategic blunders like the A380 behemoth that proved short-lived because airlines couldn't profitably operate the giant plane. Boeing maintained that smaller, nimbler planes like the 787 Dreamliner would have an edge — a prediction that proved right. Yet the longtime dominance of the two narrowbody aircraft raises questions about the vitality of a duopoly system that favors stability over innovation. Both airplane makers have repeatedly opted for incremental changes that squeeze efficiencies out of their top-selling models, rather than going the more expensive route of designing a replacement aircraft from scratch. Airbus was first to introduce new engines to its A320, turning the neo variant into a huge hit with airlines seeking to cut their fuel bill. Under pressure, Boeing followed, but its approach proved calamitous. The US planemaker came up with the 737 Max, strapping more powerful engines onto the aircraft's aging, low-slung frame. It installed an automated flight-stabilizing feature called MCAS to help manage the higher thrust and balance out the plane. Regulators later found MCAS contributed to two deadly 737 Max crashes that led to a global grounding of the jet for 20 months, starting in 2019. More recently, Airbus has been bedeviled by issues with the fuel-efficient engines that power the A320neo. High-tech coatings that allow its Pratt & Whitney geared turbofans to run at hotter temperatures have shown flaws, forcing airline customers to send aircraft in for extra maintenance, backing up repair shops and grounding hundreds of jets waiting for inspection and repair. With both narrowbody families near the end of their evolutionary timeline, analysts and investors have begun asking about what's next. China, for its part, is seeking to muscle into the market with its Comac C919 model that's begun operating in the country, but hasn't so far been certified to fly in Europe or the US. Boeing Chief Executive Officer Kelly Ortberg said in July that the company is working internally toward a next-generation plane, but is waiting for engine technology and other factors to fall into place, including restoring cash flow after years of setbacks. 'That's not today and probably not tomorrow,' he said on a July 29 call. Airbus's healthier finances give it more flexibility to explore design leaps. CEO Guillaume Faury toyed with rolling out a hydrogen-powered aircraft — potentially with a radical 'flying wing' design — in the mid-2030s but has since pushed back the effort to focus on a conventional A320 successor. The Toulouse, France-based company is considering an open-rotor engine that would save fuel through its architecture rather than the current jet turbines that push the limits of physics to eke out gains. Speaking at the Paris Air Show in June, Faury called the A320 'quite an old platform' and affirmed plans to launch a successor by the end of this decade, with service entry in the mid-2030s. 'I have a lot of focus on preparing that next-generation of single aisle,' Faury said. 'We are very steady and very committed to this.' --With assistance from Jinshan Hong. What Declining Cardboard Box Sales Tell Us About the US Economy Americans Are Getting Priced Out of Homeownership at Record Rates Bessent on Tariffs, Deficits and Embracing Trump's Economic Plan How Syrian Immigrants Are Boosting Germany's Economy Twitter's Ex-CEO Is Moving Past His Elon Musk Drama and Starting an AI Company ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store