Raytheon ("light of the gods") shines in the upper pantheon of US military contractors; the company regularly places among the Pentagon's top 10 prime contractors. Its air/land/sea/space/cyber defense offerings include reconnaissance, targeting, and navigation systems, as well as missile systems (Patriot, Sidewinder, and Tomahawk), unmanned ground and aerial systems, sensing technologies, and radars. Additionally, Raytheon makes systems for communications (satellite) and intelligence, radios, cybersecurity, and air traffic control. It also offers commercial electronics products and services, as well as food safety processing technologies. The US government accounts for a large portion of sales.

Geographic Reach

Raytheon maintains offices in nearly 20 countries and has established global companies to serve customers Australia, Spain, France, Germany, Canada, and the UK. The company sells products and services to customers in 80 nations, although the US accounts for about three-fourths of sales (with the Asia-Pacific and Middle East and North Africa regions each bringing in an additional 10%).

Sales and Marketing

The US government accounted for 72% of Raytheon's sales in 2013. While it consistently counts among its customers the US Department of Defense (DoD), the Federal Bureau of Investigation (FBI), and NASA, as well as members of the US military and US intelligence communities, Raytheon also has some key international customers. The company has contracts with South Korea to provide air and missile defense systems, with Japan for training, Saudi Arabia for surveillance systems, and Australia for joint standoff weapons. Other main global clients include Finland, Germany, Taiwan, and the United Arab Emirates.


To support its customers worldwide, Raytheon serves defense and intelligence markets via four business segments: Integrated Defense Systems (IDS), Intelligence, Information and Services (ISS),  Missile Systems (MS), and Space and Airborne Systems (SAS). Previously the company operated in six segments, but it restructured in April 2013. Its former segments included Network Centric Systems (NCS) and Technical Services (TS).

Having patented the first microwave more than 65 years ago, Raytheon is still developing and designing futuristic realities. The product that stands out most in the company's portfolio is the missile, however. As the world's #1 missile maker, Raytheon is a key player in US efforts to construct a comprehensive missile defense system. Such systems need intercept vehicles, sensors, command and control systems, and systems integration expertise. Raytheon's precision engagement offerings include the company's missiles, as well as radars, data links, targeting and warning systems, and lasers. In recent years the company has released an air and missile defense systems product line, which includes the Standard Missile-3, the Exoatmospheric Kill Vehicle (EKV), and branded development programs.

Financial Performance

Raytheon's revenues have been gradually declining the last three years, with revenues dipping 3% from $24.4 billion in 2012 to $23.7 billion in 2013. Profits, however, jumped 6% from $1.89 billion in 2012 to #2 billion in 2013.

The decline in revenue for 2013 was fueled by a drop in SAS sales due to lower demand within certain classified programs and on certain intelligence, surveillance, and reconnaissance programs as a result of reduced program requirements. Its IIS segment also experienced fewer sales due to a decrease in classified programs and training programs supporting the US Army’s Warfighter FOCUS activities.

The increase in profits for 2013 was attributed to a decrease in operating expenses and an additional $64 million it earned from discontinued operations during the year. Raytheon's operating cash flow also increased by $421 million in 2013 due to the surge in net income coupled with decreased deprecation and amortization expenses and lower pension contributions for the year.


Raytheon's business is contingent, to a great extent, on the federal defense budget. With the US budget deficit hitting an all-time high in recent years, the present administration is struggling to prioritize among such spending initiatives as defense, homeland security, health care reform, and alternative energy development. 

Raytheon's diverse product lineup puts it in a better position to weather budget cuts than some of its competitors that handle a limited number of defense products and services. The company's offerings run the gamut from kill vehicles (ballistic missile interceptors) to pasteurization technology and GPS satellites.

Mergers and Acquisitions

The company's cybersecurity business has been getting a lot of attention of late, primarily through multiple acquisitions, which reflect Raytheon's general strategy for building its operations and growing its customer base. In late 2012 Raytheon acquired Teligy, a company that provides online security technology specializing in wireless communications, vulnerability analysis, reverse engineering, and custom kernel software/device driver development.

Also in 2012 Raytheon purchased the Government Solutions business of SafeNet for $280 million in cash and renamed it Raytheon Secure Information Systems (RSIS). RSIS provides advanced encryption capabilities needed by government and industry customers to protect classified data. It is being integrated into the company’s NCS business, within the Integrated Communication Systems product line.

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870 Winter St
Waltham, MA 02451-1449
Phone: 1 (781) 522-3000
Fax: 1 (781) 522-5830


  • Employer Type: Public
  • Stock Symbol: RTN
  • Stock Exchange: NYSE
  • Chairman and CEO: Thomas A. Kennedy
  • VP and CFO: Anthony F. O?Brien
  • VP, CIO, and President Global Business Services: Rebecca B. Rhoads

Major Office Locations

  • Waltham, MA

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