RTX Corporation (RTX) shares held steady Tuesday after landing a substantial aviation infrastructure contract that underscores the company's longtime partnership with federal regulators.
Collins Aerospace, an RTX division, announced Monday it secured a major research and systems award from the Federal Aviation Administration. The deal supports the broader effort to modernize the U.S. National Airspace System, which has been operating on increasingly outdated technology.
What The Contract Covers
The FAA is paying Collins $438 million to deliver next-generation radar systems as part of the Department of Transportation's sweeping modernization initiative. The upgrade is designed to overhaul the nation's air traffic control infrastructure, which currently relies on a patchwork of aging equipment.
The Technology Behind The Upgrade
Collins will install both cooperative and non-cooperative radar systems at strategic locations throughout national airspace. The cooperative system, called the Condor Mk3, communicates directly with aircraft transponders. The non-cooperative ASR-XM radar tracks planes using reflected signals, which means it doesn't depend on aircraft actively transmitting their position.
Both radar types have already passed FAA surveillance certification tests, giving regulators confidence in their reliability. Officials say the new systems will replace multiple older platforms with a single, flexible architecture that simplifies operations and reduces maintenance headaches.
Why This Matters For Air Travel
The contract aims to deliver more reliable and secure data to air traffic controllers, which should improve both safety and efficiency across U.S. skies. The radars are particularly effective at tracking aircraft at lower altitudes, where precision matters most during takeoffs and landings. Long-term operational costs are expected to drop as controllers work with unified systems instead of managing disparate legacy equipment.
A Longstanding Partnership
"As a trusted supplier to the FAA for more than 70 years, Collins is ready to rapidly deploy next-generation radar systems," said Nate Boelkins, president of avionics at Collins Aerospace. He noted the technology will integrate smoothly with existing infrastructure and help prepare the system for future demands.
RTX units already operate more than 550 radar systems within U.S. national airspace, giving the company deep institutional knowledge of how the network functions. That existing footprint provides a natural foundation for large-scale modernization efforts.
RTX Price Action: RTX shares were up 0.70% at $188.49 at the time of publication Tuesday, trading near the 52-week high of $190.50.