Aerojet Rocketdyne Announced That it had Entered into a Definitive Agreement to be Acquired by Lockheed Martin Corporation
Aerojet Rocketdyne is the premier, private sector manufacturer of rocket propulsion systems in the world. They have been building rocket propulsion systems for more than 60 years and have participated in virtually every major U.S. space and missile program since the beginning of the Cold War.
Volume 3 of Space Letter International published in September 2020 recommended purchasing Aerojet Rocketdyne (NYSE: AJRD) for approximately $44 per share. On December 20, 2020, Aerojet Rocketdyne announced that it had entered into a definitive agreement to be acquired by Lockheed Martin Corporation (NYSE: LMT) in an all-cash transaction, with a total equity value of $5.0 billion, for $56.00 per share in cash, representing a premium of approximately 27% to when Space Letter International recommended purchasing the stock.
In addition to solid and liquid-fuel rocket engines, Aerojet Rocketdyne also makes Hypersonic engines used in weapons systems. Hypersonic engines represent the state of the art in advanced, aeronautic propulsion systems. Hypersonic weapons systems operate at speeds greater than Mach 5, i.e., five times the speed of sound, or approximately 3,800 mph. This means that a Hypersonic system can travel about one mile per second.
Between 2015 and 2024, the United States Department of Defense, Department of Energy and National Aeronautics and Space Administration will spend almost $15 billion developing Hypersonic technologies and weapons systems.
Aerojet Rocketdyne has been a significant player in Hypersonic propulsion systems for many years. The company’s Hypersonic weapons related work is estimated at $100 million, or approximately 5 percent of revenue, in 2020. As a percentage of revenue, Aerojet Rocketdyne has one of the highest exposure levels to Hypersonic weapons of all Defense contractors.
For this reason, Volume 4 of Space Letter International, takes a close look at U.S. Government programs developing Hypersonic technologies and weapons and the money being spent on this effort. Specifically, Volume 4 covers:
A final, detailed, financial analysis of Aerojet Rocketdyne before it is merged into Lockheed Martin’s operations in the second half of 2021.
A look at what Hypersonic Flight is all about including the different categories, major programs, opportunities and remaining challenges, as well as the arguments that have been put forward against Hypersonic weapons.
Current United States Hypersonic offensive and defensive weapons programs in terms of their structures, end-users, funding, critical technologies, schedules, costs, challenges and T&E.
U.S. Navy, Army. Air Force, DARPA and MDA programs, as well as activities of players like Lockheed Martin, Dynetics, General Atomics, Raytheon and Sandia, among others.
Purchasers of Volume 4 will understand the importance of Hypersonic technology and weapons and how to invest in this sector in the years ahead.
Products Mentioned:
- Financial Analysis
- Hypersonic Weapons
- Ramjets/Scramjets
- OpFires
- Glide Breaker
- Mayhem
- Test Facilities
- Wind Tunnels
- Open-Air Ranges
- Boost-Glide Systems
Table of Contents
1. INTRODUCTION
- Scope
- Methodology and Sources
- Statistical Notes
2. EXECUTIVE SUMMARY
3. AEROJET ROCKETDYNE HOLDINGS INC.
- Company Overview
- Segments
- Lockheed Martin Acquisition
- Aerospace and Defense
- Stock Snapshot
- 2020 Achievements
- Financial Overview
- Income
- Balance Sheet
- Cash Flows
- Backlog
- Capitalization
- Customers
- Largest Customers
- Competition
- Space Products
- Defense Products
- Largest Programs
- Rocket Engines
- Hypersonic Revenue
- DMJR
- HyFly 2
- AFRE
- Hypersonic Conventional Strike Weapon
- Medium Scale Critical Components Program
- OpFires
- Glide Breaker
- Mayhem
4. HYPERSONIC FLIGHT
- Definition
- Speed Is the New Stealth
- Categories
- Major Programs
- Opportunities
- Remaining Challenges
- Thermal Protection
- Communications
- Maneuverability
- Integration
- Aerodynamics
- Kill Chain
- Arguments Against Hypersonic Weapons
- Capabilities Misperceptions
- Social Construction of Technical Facts
5. UNITED STATES HYPERSONIC WEAPONS PROGRAMS
- Background
- Current Efforts
- Funding
- Testing & Evaluation
- Offense Weapons
- Defensive Systems
- Missile Defense Agency
- Space Development Agency
- Middle-Tier Pathways
- Critical Technologies
- Aggressive Schedules
- Development Costs
- Workforce Challenges
- Industrial Base Challenges
- Test Facilities
- Wind Tunnels
- Open-Air Ranges
- Agency Collaboration
- Coordination Mechanisms
6. UNITED STATES HYPERSONIC PROPULSION MARKET AND COMPETITORS
- Background
- Game Changer
- Categories
- Boost-Glide Systems
- Defenses Against Hypersonic Weapons
- Concepts and Prototypes
- United States
- U.S. Programs
- U.S. Navy
- U.S. Army
- Lockheed Martin
- Dynetics Technical Solutions
- Verity Integrated Systems
- Penta Research Inc.
- Integration Innovation, Inc.
- General Atomics
- Peraton
- Raytheon Technologies Corporation
- HAWC
- SCIFiRE
- Sandia National Laboratories
- Wind Tunnel
- U.S. Air Force
- DARPA
- Missile Defense Agency
- Test Facilities
- Universities
- UCAH
List of Tables
1.) U.S. Military Systems Using Aerojet Rocketdyne Propulsion Systems
2.) Aerojet Rocketdyne Stock Snapshot
3.) Aerojet Rocketdyne Financial Overview ($ Million, EPS in $):
2018-2020
4.) Aerojet Rocketdyne Income Statement ($ Million, EPS in $):
2018-2020
5.) Aerojet Rocketdyne Balance Sheet ($ Million, except per share amounts): 2019-2020
6.) Aerojet Rocketdyne Cash Flows ($ Million): 2019-2020
7.) Aerojet Rocketdyne Backlog ($ Billion): 2019-2020
8.) Aerojet Rocketdyne Market Capitalization ($ Million): 2015-2020
9.) Aerojet Rocketdyne Sales by Largest Customers (%): 2018-2020
10.) Primary Participants in the Rocket Propulsion Market
11.) Aerojet Rocketdyne Revenue by Largest Programs ($ Million) and Growth Rate (%): 2018-2020
12.) Aerojet Rocketdyne Engines in Production: 2021
13.) U.S Hypersonic Weapons Revenue by Contractor: ($ Million): 2018-2020
14.) Categories of Speed
15.) U.S. Hypersonic Weapon-related and Technology Development Efforts by Phase: 2015-2024
16.) Hypersonic Prototyping Development Efforts: 2021
17.) U.S. Department of Defense Offensive Hypersonic Weapons in Product Development: 2020
18.) Selected U.S. Hypersonic Cruise Missile Technology Development Efforts: 2021
19.) Technical Challenge to Developing and Fielding Prototype Hypersonic Weapon Systems and Associated Mitigation Efforts
20.) Human Capital and Industrial Base Challenges
21.) Flight and Ground Testing Challenges and Associated Mitigation Efforts
22.) U.S. Government Organizations Participating in Hypersonic Weapon-related and Technology Development (Number)
23.) Key Selected DOD Hypersonic Development Coordination Mechanisms
24.) U.S. Department of Defense Budget by Missile Defeat and Defense Systems ($ Million): 2020-2021
25.) Summary of Selected U.S. Hypersonic Weapons Programs ($ Million): 2020-2021
List of Figures
1.) RS-25 Rocket Engine
2.) HyFly Cruise Missile
3.) Aerojet Rocketdyne Scramjet Engine Test
4.) OpFires Concept
5.) Glide Breaker Concept
6.) Turbine-Based Combined Cycle Propulsion
7.) Comparison of Range and Area Covered in 15 Minutes for Conventional and Hypersonic Systems
8.) Comparison of Ballistic and Hypersonic Flight Trajectories
9.) Scramjet Engine
10.) Department of Defense Hypersonic Weapon System Acquisition Phases
11.) U.S. Hypersonic Weapon-related and Technology Development Funding by Type (Current $ Billions): 2015-2024
12.) U.S. Hypersonic Weapon-related and Technology Development Funding by End-User (Current $ Billions): 2015-2024
13.) NASA Langley’s Hypersonic Model Test in the 8-Foot High Temperature Tunnel
14.) NASA Langley’s 8-Foot High Temperature Tunnel Testing a Large-scale Cone Aerothermodynamic Test Article
15.) Department of Defense Hypersonic Coordination Structure
16.) Terrestrial Based Detection of Ballistic Missiles vs. Hypersonic Glide Vehicles
17.) U.S. Army Long-Range Hypersonic Weapon
18.) U.S. Army Long-Range Hypersonic Weapon Cannisters
19.) Sandia Aerospace Engineers Place a Model in the Hypersonic Wind Tunnel’s Test Section
20.) B-52 Bomber Carrying the AGM-183A
21.) Hypersonic Vehicle Emerging from ARRW
22.) U.S. Army Long-Range Hypersonic Weapon
23.) U.S. Army Long-Range Hypersonic Weapon Cannisters
24.) Sandia Aerospace Engineers Place a Model in the Hypersonic Wind Tunnel’s Test Section
25.) B-52 Bomber Carrying the AGM-183A
26.) Hypersonic Vehicle Emerging from ARRW
Companies Mentioned
- Aerojet Rocketdyne
- Dynetics Technical Solutions
- General Atomics
- Integration Innovation, Inc.
- Lockheed Martin
- Northrop Grumman
- Penta Research Inc.
- Peraton
- Raytheon Technologies Corporation
- Sandia National Laboratories
- Verity Integrated Systems
