Raytheon Technologies is Set to Dominate the Aerospace after merging with United Technology

Raytheon Technologies (RTN) is an aerospace and defense company that specializes in providing commercial, military, and government customers worldwide with advanced systems and services. The company consists of four top industry businesses – Collins Aerospace Systems which specializes in “aerostructures, avionics, interiors, mechanical systems, mission systems, and power controls” that serve customers in the commercial, business, regional, aviation and military sectors; Pratt & Whitney which specializes in designing, manufacturing, and servicing advanced aircraft engines and auxiliary power systems for customers across commercial, business, and military sectors;  Raytheon Intelligence & Space which specializes in providing cyber and software solutions and developing advanced sensors; and Raytheon Missiles & Defense which specializes in providing advanced end-to-end solutions to detect, track and engage threats.

Raytheon Merges with United Technologies

On April 3, 2020, the company finalized its merger with United Technologies, opening the company up to more advantages over competitors. Both companies now go by the name Raytheon Technologies Corporation, and now trade in the NYSE under the ticker symbol “RTX.” There are a lot of expectations that this new company would dominate the aerospace and defense industry by becoming a dominant supplier to commercial, military, and government customers in the world.

Since before the merger, both companies were major players in their fields – Raytheon Technologies was a large supplier in the defense sector through its different segments. The company has maintained the leading position as the global military contractors – supplying all US military branches and international allies with missiles and sensors.

United Technologies is also a leading player in the aerospace industry. Since it spun off Otis and Carrier as separate companies, the company has been able to focus on its aerospace business. Merging with Raytheon would only offer United Technologies a better opportunity to expand its business reach.

One of the top advantages Raytheon Technologies has over other aerospace and defense companies is that it offers customers different advanced products and services. For example, Raytheon is the only aerospace and defense company that has brought turbofan engines to the market. It is also the only company that has designed and developed a fighter engine that combines the performance features and stealth of the F-35 fighter. No other company in the defense sector can coast of more expertise in digital radar, hypersonic weapons, electronic warfare, and cybersecurity.

Raytheon is generally an electronic and propulsion company, and it is not limited to planes and missiles but also. Satellite constellations, communications networks, and traffic control. That way, it can top the aerospace market by diversifying its complex portfolio.

In as much as business conditions have been impacted by the coronavirus pandemic since the merger, a few changes have been made to the company. These changes, however, have not weakened the effectiveness of the company as it has the capability of coping with difficult market conditions.

Disclaimer: Investingport fund owns RTN