Raytheon Awarded $42 Million Navy Contract for Lightweight Torpedoes

For the development of lightweight torpedoes for its submarines, the United States Navy has recently awarded the Raytheon Company (NYSE: RTN) a $42.6 million contract. Raytheon is expected to deliver 100 of the MK54 torpedoes to the Navy as part of the contract.

In addition to the MK54 torpedoes, the contract also includes options for additional quantities for both domestic and international assets with a potential value to Raytheon of $550 million over a five year term. According to the statement from the company, the torpedoes will be used both for the U.S. Navy’s fleet as well as military sales to other allied countries.

“Together with the Navy customer, we will leverage our collective expertise to continue to advance the reliability and effectiveness of the MK54 torpedo,” said Kevin Peppe, IDS’ vice president of Seapower Capability Systems. “Our dedication to quality and execution stems from our commitment to our customer – to deliver the most affordable and effective undersea weapons to naval fleets around the world.”

Since the end of the last century, Raytheon has become the only provider of lightweight torpedoes to the Navy. Working jointly with the Navy, the company has formed partnership, referred to as Team Torpedo, which is dedicated to the design and production of the world’s most capable torpedoes.

According to the company, the work for the new contracts will be performed at Raytheon IDS’ Torpedo and Readiness Center, co-located with the U.S. Navy at NUWC Division Keyport, Wash., and at the Seapower Capability Center, Portsmouth, R.I.