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.
Key Topics Covered:
Methodology and Sources
2. EXECUTIVE SUMMARY
3. AEROJET ROCKETDYNE HOLDINGS INC.
Lockheed Martin Acquisition
Aerospace and Defense
Hypersonic Conventional Strike Weapon
Medium Scale Critical Components Program
4. HYPERSONIC FLIGHT
Speed Is the New Stealth
Arguments Against Hypersonic Weapons
Social Construction of Technical Facts
5. UNITED STATES HYPERSONIC WEAPONS PROGRAMS
Testing & Evaluation
Missile Defense Agency
Space Development Agency
Industrial Base Challenges
6. UNITED STATES HYPERSONIC PROPULSION MARKET AND COMPETITORS