25 January 2023

Raytheon Technologies to merge two defence businesses

by Marc Selinger

Raytheon Technologies' products include the sea-launched Tomahawk cruise missile. (NAVAIR)

Raytheon Technologies (RTX) plans to streamline its organisation by combining its two defence-focused business units into one, the US-based company announced on 24 January.

Raytheon Intelligence & Space (RIS) and Raytheon Missiles & Defense (RMD) will become a single business called Raytheon. Aircraft parts maker Collins Aerospace and aircraft engine manufacturer Pratt & Whitney will remain individual businesses within RTX.

RTX chief operating officer Christopher Calio said that combining RIS and RMD will improve internal collaboration and present a more united front to customers. “We've had customer feedback throughout the last couple of years about the need for us to figure out how to better integrate some of our solutions,” Calio told analysts.

RIS president Roy Azevedo will retire from his role and become an adviser to Calio, who will oversee the reorganisation. RTX plans to implement the merger in the second half of 2023. Asked whether RMD president Wesley Kremer will lead the combined defence business, an RTX spokesperson told Janes that “no decisions have been made”.

RTX is itself a product of a 2020 merger between Raytheon Company and United Technologies Corporation (UTC). Combining RIS and RMD is “the next step in our integration and evolution”, RTX chairman and CEO Gregory Hayes told analysts.

Hayes said that Collins could gain “pieces” from RIS and RMD, such as those related to Joint All-Domain Command and Control (JADC2). “This is not just about putting RIS and RMD together to re-create the old legacy Raytheon company,” Hayes said. “We're going to take the entire portfolio of RIS, Collins, [and] RMD and move the pieces where they are most appropriately aligned from a technology and a customer standpoint.”

Raytheon Technologies (RTX) plans to streamline its organisation by combining its two defence-focuse...

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