Raytheon

Raytheon

File:Raytheon logo.svg Logo used until 2020 merger
Company type	Division
Industry	Defense, Electronics
Predecessor	American Appliance Company (1922)
Founded	January 1, 1922 (1922-01-01) in Cambridge, Massachusetts, United States
Fate	Merged with United Technologies Corporation in 2020 to form Raytheon Technologies (now RTX Corporation)
Headquarters	Waltham, Massachusetts , United States
Area served	Worldwide
Key people	Charles Francis Adams IV (former president)
Products	Guided missiles, military electronics, commercial electronics, specialized mission aircraft (until 2007)
Number of employees	67,000 (2018)
Parent	RTX Corporation

Raytheon operates as a division within RTX Corporation and stands as a prominent American defense contractor, focusing on the production of weaponry and both military and commercial electronic systems. Established in 1922, it combined forces with United Technologies Corporation in 2020 to create Raytheon Technologies, which later adopted the name RTX Corporation in July 2023.

Originally incorporated in 1928 and officially taking on the Raytheon Company designation in 1959, the firm derived over 90% of its income from defense contracts. By 2012, it was recognized as the fifth-largest military contractor worldwide, and by 2015, it had become the third-largest U.S. defense contractor based on defense-related revenue. Raytheon held the position as the leading global manufacturer of guided missiles and was engaged in corporate and specialized mission aircraft manufacturing until early 2007. In 2018, its workforce numbered around 67,000 employees globally, with annual revenues approaching US$25.35 billion.

The company’s headquarters relocated multiple times within Massachusetts: initially situated in Cambridge (1922–1928), then Newton (until 1941), followed by Waltham (until 1961), Lexington (until 2003), before returning to Waltham thereafter.

Early years

The American Appliance Company was founded in 1922 in Cambridge, Massachusetts by MIT professor and scientist Vannevar Bush, engineer Laurence K. Marshall, and scientist Charles G. Smith. Originally concentrating on refrigeration technology, the enterprise soon pivoted to electronics. Its inaugural product was a gaseous helium voltage-regulator tube inspired by Smith’s astronomical studies. Named Raytheon—meaning 'light from the gods'—this tube powered a battery eliminator that transformed household alternating current into regulated high-voltage direct current for radios, removing reliance on expensive batteries.

In 1925, the company rebranded as Raytheon Manufacturing Company and successfully marketed its rectifier under this name. By 1928, it merged with Q.R.S. Company, a manufacturer of electron tubes and switches, continuing operations as Raytheon Manufacturing Company. By the 1930s, it had grown into one of the largest vacuum tube producers worldwide. In 1933, Raytheon expanded its portfolio by acquiring Acme-Delta Company, which specialized in transformers, power equipment, and electronic automotive components.

During World War II

Throughout World War II, Raytheon obtained government contracts to mass-produce magnetrons—microwave-generating tubes essential for radar technology—developed with collaboration from MIT’s Radiation Laboratory. The company swiftly manufactured magnetrons for use in ground-based, airborne, and naval radar systems and was a pioneer in developing shipboard radar for submarine detection. Additionally, Raytheon produced shock-resistant vacuum tubes for proximity fuzes, a complex process demanding high precision. By the conclusion of the war in 1945, Raytheon had supplied approximately 80% of all magnetrons and ranked 71st among U.S. firms in military production contracts.

In 1945, Percy Spencer of Raytheon discovered that magnetrons could quickly heat food, leading to the invention of the microwave oven. The company launched the commercial Radarange microwave oven in 1947.

Post-World War II Developments

Following the conclusion of World War II, Raytheon focused on producing radio and television transmitters with low to medium power levels for commercial customers. Meanwhile, the market for high-powered transmitters was largely controlled by larger firms such as Continental Electronics, General Electric, and RCA.

In 1946, Raytheon broadened its electronics portfolio by acquiring the Submarine Signal Company, a pioneer in maritime safety technology. This strategic acquisition facilitated the creation of the first missile guidance system capable of targeting airborne objects. Charles Francis Adams IV assumed the presidency in 1948, coinciding with Raytheon's initiation into guided missile manufacturing. By 1950, Raytheon's Lark missile became the first to successfully down an aircraft mid-flight. The Korean War spurred military contracts for air-to-air Sparrow and ground-to-air Hawk missiles. Over time, Raytheon established itself as a key missile manufacturer with systems such as the Patriot antimissile and Phoenix air-to-air missiles.

Raytheon's foray into computing included the development of the RAYDAC computer for the U.S. Navy in 1953; however, it was outdated by deployment. A subsequent project named RAYCOM remained unfinished. In 1954, Raytheon joined forces with Honeywell to create Datamatic but divested its stake a year later before any products reached market.

The 1958 acquisition of Applied Electronics Company allowed Raytheon to enter commercial marine navigation and radio equipment sectors, incorporating products from Japanese manufacturers. That same year, the company adopted the name Raytheon Company. Additionally, Raytheon began producing transistors such as the CK722, which were marketed toward electronics enthusiasts.

In 1961, British electronics manufacturer A.C. Cossor merged with Raytheon to form Raytheon Cossor; this subsidiary remained part of Raytheon as of 2010.

Raytheon's purchase of Amana Refrigeration in 1965 marked its entry into household appliances. Utilizing Amana's brand recognition and distribution channels, Raytheon introduced the first countertop microwave oven in 1967 and rapidly secured a leading position in that market segment.

In 1966, Raytheon expanded into educational publishing by acquiring D.C. Heath and Company, recognized for its influential physics textbooks. That year also saw Raytheon's production of the Apollo Guidance Computer used during NASA's Project Apollo missions.

By the late 1970s, further growth in appliances came through acquiring McGraw-Edison's appliance division, which included the Speed Queen washer and dryer product line.

The 1980s

In 1980, Raytheon acquired Beech Aircraft Corporation, a prominent general aviation manufacturer originally founded by Walter H. Beech. The company's aircraft offerings grew in 1993 with the purchase of Corporate Jets Inc., gaining control over British Aerospace’s (now BAE Systems) Hawker business jet line. These assets were consolidated in 1994 under the newly formed Raytheon Aircraft Company. In early 2007, Raytheon divested its aircraft operations, which became Hawker Beechcraft and were subsequently integrated into Textron Aviation in 2014. The product range included business jets such as the Hawker 800XP, Hawker 4000, and Beechjet 400A; popular turboprop models like the Beechcraft Super King Air; piston-engine airplanes including the Beechcraft Bonanza; as well as specialized aircraft like the single-turboprop T-6A Texan II, utilized by both the United States Air Force and United States Navy as primary trainers.

1990s

Raytheon's Patriot missile system gained worldwide recognition during the 1991 Gulf War, significantly increasing its global sales. To reinforce its standing in defense electronics, Raytheon acquired Dallas-based E-Systems in 1995; followed by Chrysler Corporation's defense electronics and aircraft modification divisions, including Electrospace Systems in 1996; and the Texas Instruments Defense Systems & Electronics Group in 1997. That same year, Raytheon purchased the aerospace and defense segment of Hughes Aircraft Company from Hughes Electronics Corporation, a subsidiary of General Motors. This acquisition brought with it product lines previously obtained by Hughes, such as General Dynamics' missile operations and components of Delco Electronics.

Throughout this decade, Raytheon divested several non-defense enterprises, including Amana Refrigeration, Raytheon Commercial Laundry—which was sold to Bain Capital's Alliance Laundry Systems—and Seismograph Service Ltd, which was transferred to Schlumberger-Geco-Prakla. On October 12, 1999, the company withdrew from the personal rapid transit (PRT) sector by canceling its PRT 2000 system project due to prohibitive development expenses and minimal market interest.

2000s

Raytheon's office on the 91st floor of the South Tower in the World Trade Center was destroyed during the collapse triggered by the September 11, 2001 attacks.

In November 2007, Raytheon broadened its scope into robotics through the acquisition of Sarcos. Later, in September 2009, it fully acquired Bolt Beranek and Newman Inc. as a subsidiary.

2010s

December 2010 saw Raytheon enhance its signal processing expertise by acquiring Applied Signal Technology for $490 million.

In October 2014, Raytheon won a $1 billion contract from the USAF to develop the 3DELRR long-range radar system, surpassing competitors Lockheed Martin and Northrop Grumman. Following objections and subsequent reviews, the contract award was postponed until 2017, when Raytheon was confirmed as the recipient.

May 2015 marked Raytheon's entry into cybersecurity with its $1.9 billion acquisition of Websense from Vista Equity Partners. This firm was integrated with its RCP division to create Raytheon|Websense. The cybersecurity portfolio expanded further with the purchases of Foreground Security for $62 million in October 2015 and Stonesoft from Intel Security in January 2016, after which the combined entity was rebranded as Forcepoint.

In July 2016, Poland announced plans for a $5.6 billion agreement with Raytheon to modernize its Patriot missile-defense systems.

Throughout 2017, Raytheon secured multiple multi-billion-dollar weapons contracts with Saudi Arabia as part of broader U.S.-Saudi defense arrangements.

By July 2019, Qatar’s Ministry of Defense committed to acquiring NASAMS and Patriot missile defense systems from Raytheon. Subsequently, the company faced penalties related to bribery accusations involving Qatari officials influencing defense procurement.

2020s

In February 2020, Raytheon completed production of the initial radar antenna array for the US Army’s new Lower Tier Air and Missile Defense Sensor (LTAMDS), intended as a replacement for the Patriot system's sensor.

April 2020 marked Raytheon's merger with United Technologies Corporation to establish Raytheon Technologies, relocating headquarters to Arlington, Virginia from UTC’s Farmington location.

The Chinese government imposed sanctions on Raytheon in October 2020 and again in February 2023 due to arms sales directed toward Taiwan.

In July 2023, Raytheon Technologies rebranded itself as RTX Corporation, consolidating its Raytheon Intelligence & Space and Raytheon Missiles & Defense divisions into a single unified Raytheon business unit.

In August 2024, RTX agreed to pay $200 million to settle allegations involving unauthorized exports of defense technology to China, Russia, Iran, and other nations. This settlement resolved over 750 violations of the Arms Export Control Act and ITAR regulations. Half of this penalty was allocated toward strengthening RTX’s compliance framework.

By October 2024, RTX committed nearly $1 billion to resolve claims of defrauding the U.S. Defense Department and bribing a Qatari military official. The company stated that most wrongdoing occurred before 2020 and pledged to implement more rigorous compliance controls.

Financial Performance

During the 2017 fiscal year, Raytheon achieved a net profit of US$2.024 billion on revenues totaling US$25.348 billion, reflecting a 5.1% growth compared to the prior year. By November 2018, the company's stock price surpassed $164 per share, resulting in a market valuation above US$51.7 billion.

Year	Revenue (million US$)	Net Income (million US$)	Total Assets (million US$)	Share Price (US$)	Number of Employees
2005	18,491	871	24,381	27.58
2006	19,707	1,283	25,491	33.92
2007	21,301	2,578	23,281	42.79
2008	23,174	1,672	23,134	44.40
2009	24,881	1,935	23,607	35.95
2010	25,150	1,840	24,422	40.55
2011	24,791	1,866	25,854	38.75
2012	24,414	1,888	26,686	46.38
2013	23,706	1,996	25,967	61.96	63,000
2014	22,826	2,244	27,716	89.54	61,000
2015	23,321	2,110	29,281	102.58	61,000
2016	24,124	2,244	30,238	128.50	63,000
2017	25,348	2,024	30,860	164.75	64,000

Divisions

Raytheon is segmented into five primary business units:

• Integrated Defense Systems headquartered in Tewksbury, Massachusetts; led by President Ralph Acaba
• Intelligence, Information and Services based in Dulles, Virginia; under the leadership of President Dave Wajsgras
• Missile Systems located in Tucson, Arizona; with Wesley Kremer as President
• Space and Airborne Systems operating out of McKinney, Texas; directed by President Roy Azevedo
• Forcepoint situated in Austin, Texas; CEO Matt Moynahan oversees this division

The company maintains international subsidiaries including Raytheon Microelectronics in Spain; Raytheon UK; operations in Australia, Canada and Japan; and a joint venture with ThalesRaytheonSystems in France.

Core Strategic Segments

Raytheon's business growth is concentrated around five strategic domains:

• Homeland Security
• Missile Defense
• Precision Engagement
• Intelligence, Surveillance & Reconnaissance (ISR)
• Process Optimization (via Raytheon Lean6)

Executive Leadership

Thomas Kennedy assumed the role of CEO in March 2014 and was later appointed chairman within the same year. He followed William H. Swanson who had been CEO from 2003 until 2014 and continued as chairman until September 2014. The board comprises prominent figures such as Vernon Clark and Stephen J. Hadley who provide strategic oversight and guidance on corporate governance and business direction.

Shareholder Ownership

As of December 2014 data indicates that Raytheon's principal institutional investors included Wellington Management Company; Vanguard Group; State Street Corporation; Barrow Hanley Mewhinney & Strauss; BlackRock Institutional Trust Company; BlackRock Advisors; Bank of America; Bank of New York Mellon; Deutsche Bank; and Macquarie Group.

Summary

Raytheon’s expertise lies in electronics and mission systems integration spanning sensing technologies; effects delivery; as well as command, control, communications and intelligence platforms. Its defense portfolio encompasses missiles launched from air, sea and land platforms; radar systems for aircraft; targeting equipment; communication networks; battle management systems; and components for satellites.

Air traffic control systems

• FIRSTplus Air Traffic Control Simulator
• AutoTrac III ATM System
• STARS

Radars and sensors

Raytheon produces cutting-edge radar technologies, including AESA radars, as well as electro-optical sensors and electronic systems designed for military use across airborne, naval, and terrestrial platforms. Notable products consist of:

• APG-63 and APG-70 radars installed on the F-15 Eagle
• APG-65, APG-73, and APG-79 radars utilized by the F/A-18 Hornet
• APG-77 radar developed for the F-22 Raptor in partnership with Northrop Grumman
• APG-84 RACR radar
• ALE-50 towed decoy system
• ALR-67(V)3 and ALR-69A radar warning receivers
• AN/APQ-181 AESA radar upgrade for the B-2 Spirit bomber (currently in development)
• Integrated Sensor Suite (ISS) for the RQ-4 Global Hawk unmanned aerial vehicle
• ASQ-228 ATFLIR targeting pod
• TPQ-36 and TPQ-37 Firefinder radars along with MPQ-64 Sentinel battlefield radar systems
• F-16 RACR AESA radar
• SLQ-32 electronic warfare system deployed on naval vessels
• Large-scale fixed-site radars such as PAVE PAWS, BMEWS, and the Missile Defense Agency’s X-band Radar (XBR)

Satellite sensors

Raytheon’s Space and Airborne Systems unit based in El Segundo specializes in satellite sensor technologies, a legacy inherited from Hughes Electronics. Collaborating closely with Boeing, Lockheed Martin, and Northrop Grumman, key initiatives include:

• Space Tracking and Surveillance System (STSS) sensor payload supporting ballistic missile defense efforts
• Navy Multiband Terminal (NMT), an advanced SATCOM platform that facilitates secure communications with the U.S. Milstar system—improving naval data throughput and enhancing jamming resistance
• Visible Infrared Imaging Radiometer Suite (VIIRS), currently operational aboard the Suomi NPP satellite with planned deployment on JPSS satellites to sustain climate and weather observation capabilities originally developed from MODIS sensors

Communications

• Raytheon develops digital communication platforms and software-defined radios tailored for military applications, encompassing programs such as Cooperative Engagement Capability (CEC), Navy-Marine Corps Intranet (NMCI), ECHELON, and Joint Tactical Terminal (JTT).
• The Digital Multimedia Watchdog system is employed by the FBI to capture recordings of telephone conversations and Internet communications.

Radioactive materials detection system

In support of its growing homeland security portfolio, Raytheon partners with contractors to create the Advanced Spectroscopic Portal (ASP), a technology that enhances the ability of border security personnel to detect and identify radioactive substances concealed within vehicles and cargo containers.

Semiconductors

Raytheon operates semiconductor manufacturing facilities in both the United States and the United Kingdom. By 2003, its U.S. plants concentrated on producing gallium arsenide (GaAs) components used in radio communications and infrared detection while advancing gallium nitride (GaN) technology aimed at future radar and radio systems. The UK branch specialized in CMOS devices fabricated on silicon carbide (SiC) substrates but discontinued accepting new orders after 57 years of operation.

Missile defense systems

Within the Ground-Based Midcourse Defense program, Raytheon is responsible for developing the Ground Based Interceptor (GBI), which combines a booster missile with a kinetic Exoatmospheric Kill Vehicle (EKV). Additionally, Raytheon provides critical radar infrastructure including the Sea-Based X-Band Radar (SBX) platform and the Upgraded Early Warning Radar (UEWR).

Missiles

Raytheon develops and manufactures an extensive assortment of missile systems, including but not limited to:

• AGM-65 Maverick
• AGM-88 HARM
• AGM-129 Advanced Cruise Missile
• AGM-154 Joint Standoff Weapon
• AIM-7 Sparrow
• AIM-9 Sidewinder
• AIM-54 Phoenix
• AIM-120 AMRAAM
• BGM-71 TOW
• BGM-109 Tomahawk
• FGM-148 Javelin
• FIM-92 Stinger
• GBU-28 Paveway III
• Peregrine air-to-air missile
• MIM-23 Hawk
• MIM-104 Patriot
• RIM-7 Sea Sparrow
• RIM-161 Standard Missile 3
• RIM-162 ESSM
• Pyros

Environmental record

In April 2008, Raytheon's facility in St. Petersburg, Florida became the focus of two lawsuits addressing concerns over health hazards, property depreciation, and environmental contamination. Investigations by the Florida Department of Environmental Protection (DEP) revealed the presence of carcinogens such as trichloroethylene, 1,4-dioxane, and vinyl chloride within groundwater supplies, alongside airborne toxins including lead and toluene. Raytheon had taken ownership of this location in 1995 following its acquisition of Dallas-based E-Systems, where contamination issues had been documented since 1991. Although groundwater monitoring has been ongoing since 1996, Raytheon was required to complete further investigations by May 2008. While no conclusive evidence linked contamination to drinking water or adverse health effects, media scrutiny contributed to litigation citing declines in real estate values.

The Environmental Protection Agency (EPA) directed Raytheon to remediate polluted groundwater at its Tucson, Arizona site—acquired through the Hughes merger—due to decades-long disposal of metals and chlorinated solvents dating back to 1951. To address this, an oxidation treatment system was implemented for water purification.

In August 2006, Raytheon's Stream Contact Centre in Derry, Northern Ireland experienced a protest involving damage to equipment and occupation of the premises. The demonstrators were prosecuted under anti-terrorism statutes; however, most were acquitted in 2008 except for one individual found guilty of theft.

By 2013, Raytheon earned recognition from the EPA with the Goal Achievement Award for outstanding management of greenhouse gas emissions, underscoring its advancements in environmental stewardship and sustainability efforts.

See also

• Tactical Control System
• Top 100 US Federal Contractors – $16.1 billion in FY2009

External links

• Raytheon Company official website (Archived)

• Raytheon Company Semiconductor Division Records, 1965–1986 at Stanford University Libraries
• Political contributions information