Weapons

Raytheon Sees Future Business In Hypersonic Defense Technology

Defense officials routinely tout the hypersonic weapons they hope to develop and field, but Raytheon’s leadership sees anti-hypersonic defensive technology as the better long-term business bet.

Raytheon is very interested in expanding its hypersonics business, especially hypersonics defense capabilities, Raytheon chief executive Tom Kennedy said during a Thursday conference call with Wall Street analysts.

“We think the hypersonic defense market is larger than the hypersonic market,” Kennedy said.

There is a market for creating an offensive hypersonic attack system, Kennedy said. However, developing a hypersonics defense system involves creating the sensors used to track incoming hypersonic weapons and creating a vehicle that can successfully intercept the incoming projectile.

Raytheon considers developing hypersonic technology a crucial part of its Missile Systems business’s ability to compete for future government contracts. With 2018 sales of $8.3 billion, Raytheon’s Missile Systems business is the largest division by sales, representing about 30 percent of Raytheon’s total $27.1 billion in sales for the year, according to the company’s recently filed fourth quarter financial report. In 2019, Raytheon expects the Missile Systems business to record sales of between $8.9 billion and $9.1 billion.