RAYTHEON COMPANY

# Raytheon Company - Vendor Assessment

## Agency Concentration Risk

Raytheon demonstrates extreme concentration risk with the Department of Defense commanding 92% ($75.1B) of total obligated value across 679 awards. This dependency leaves the vendor highly vulnerable to DoD budget fluctuations, policy shifts, or procurement prioritization changes. The remaining eight agencies collectively represent only 8% ($6.2B), with NASA as the secondary partner at 4.2% ($3.4B). This imbalanced portfolio structure creates significant revenue stability concerns.

## Contract Expiry Exposure

The vendor faces substantial near-term renewal pressure with $21.0B in obligated value expiring within 18 months, representing approximately 26% of total portfolio value. This concentration of expiration dates creates execution risk and requires aggressive rebid activity across multiple programs simultaneously.

## NAICS Diversification

Despite serving 10 NAICS codes, Raytheon's portfolio lacks meaningful diversification. The top three codes—computer systems design (541511), guided missile/space vehicle manufacturing (336414), and aeronautical systems manufacturing (334511)—collectively account for the majority of awards. This narrow specialization reinforces defense-sector dependency.

## Strategic Outlook

Raytheon requires urgent portfolio diversification beyond traditional defense platforms. The vendor should pursue commercial aerospace, cybersecurity, and emerging technology sectors to reduce DoD concentration below 80%. Proactive contract renewal management for the $21.0B expiring portfolio is critical for maintaining revenue momentum through 2025-2026.