Zacks: Raytheon Company (RTN – Analyst Report) won a $212.7 million foreign military sales (“FMS”) contract from the U.S. Army to provide engineering services for 2016 for the Patriot program. The contracting activity is Army Contracting Command, Redstone Arsenal, AL.

The contract covers FMS to Germany, Greece, Israel, Japan, Korea, Saudi Arabia, Kuwait, Netherlands, Qatar, Spain, Taiwan and the United Arab Emirates.

The contract will use fiscal 2016 other procurement (Army); research, development, testing and evaluation; operations and maintenance (Army); and other procurement funds.

Work is scheduled to be complete by Jan 31, 2017, and will be performed in Andover, MA; Billerica, MA; Burlington, MA; El Segundo, CA; El Paso, TX; Huntsville, AL; Indianapolis, IN; Lawton, OK; Nashua, NH; Pelham, NH; Tewksbury, MA; and White Sands, NM.

Patriot is a long-range, high-altitude, all-weather system designed to counter threats from tactical ballistic missiles, cruise missiles and advanced fighter aircraft. This missile defense system was successfully used during the 1991 Gulf War and Iraqi War.

Like the U.S. and its allies, other nations across the globe are also utilizing advanced technology to strengthen their defense systems. The Patriot missile defense system has continuously been upgraded in order to keep pace with the changing dynamics of modern warfare.

Raytheon is one of the best-positioned large-cap defense players due to its non-platform-centric focus. Its total order backlog amounted to $34.7 billion at the end of the fourth quarter of 2015.

Looking forward, the company enjoys strong order bookings and order backlog, an improving balance sheet and growing cash flow. Future growth will be driven by its focus on Intelligence, Surveillance and Reconnaissance (“ISR”) unmanned systems, training, cyber security, Standard Missile-6, Patriot, Zumwalt and THAAD.

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