Raytheon CEO says company sees larger counter-hypersonics market

Raytheon is focused on both hypersonics and counter-hypersonics, but the latter is so far creating a larger market, according to the company's chief executive.

Speaking to analysts during a call this morning, Tom Kennedy said hypersonics work "is becoming a big part of our portfolio moving forward."

But, "we really believe that the counter-hypersonic market is actually larger than the hypersonic market," he added. "Not only does it include the weapons . . . but it also includes the entire kill chain --communication and sensors."

He noted that much of the Pentagon's counter-hypersonics work is classified.

"But what I can tell you is the counter-hypersonics efforts cross every one of our four businesses," Kennedy added. "The reason is it requires a solution for the entire fire-control chain to be able to go detect the threat . . . and then track that threat all the way through its flight path and then interdict somehow to destroy the threat."

"There's just more parts and therefore more parts winds up being more things to develop," he continued. "The bottom line is we are heavily participating in both."

He noted the company's planned merger with United Technologies will boost Raytheon's work in those areas.

"They will be able to help us, once we close, relative to their technology, especially into high-temperature materials . . . and they also do have some high-end sensors that we don’t have," Kennedy said.