Space Letter International Volume 4 - Aerojet Rocketdyne: Hypersonic Weapons, Technologies and Markets Analysis

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

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