RTX (RTX)
Market Price (7/24/2026): $209.69 | Market Cap: $282.7 BilInvestor Relations Sector: Industrials | Industry: Aerospace & Defense
RTX (RTX)
Market Price (7/24/2026): $209.69Market Cap: $282.7 BilSector: IndustrialsIndustry: Aerospace & Defense
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 12%, CFO LTM is 11 Bil, FCF LTM is 8.0 Bil Stock buyback supportStock Buyback 3Y Total is 13 Bil Low stock price volatilityVol 12M is 26% Megatrend and thematic driversMegatrends include Advanced Aviation & Space, Cybersecurity, and Advanced Materials. Themes include Commercial Space Exploration, Show more. | Trading close to highsDist 52W High is -1.0%, Dist 3Y High is -1.0% | Key risksRTX key risks include [1] the significant multi-billion dollar financial and operational disruption caused by the Pratt & Whitney GTF engine's powdered metal defect. |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 12%, CFO LTM is 11 Bil, FCF LTM is 8.0 Bil |
| Stock buyback supportStock Buyback 3Y Total is 13 Bil |
| Low stock price volatilityVol 12M is 26% |
| Megatrend and thematic driversMegatrends include Advanced Aviation & Space, Cybersecurity, and Advanced Materials. Themes include Commercial Space Exploration, Show more. |
| Trading close to highsDist 52W High is -1.0%, Dist 3Y High is -1.0% |
| Key risksRTX key risks include [1] the significant multi-billion dollar financial and operational disruption caused by the Pratt & Whitney GTF engine's powdered metal defect. |
Qualitative Assessment
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RTX (RTX) stock has gained about 10% since 3/31/2026 because of the following key factors:
1. RTX significantly surpassed Wall Street's expectations in fiscal Q2 2026, reporting adjusted earnings per share of $1.89, a 21% increase year-over-year, against an estimated $1.66. The company also reported adjusted sales of $24.7 billion, up 14% year-over-year and 16% organically, exceeding forecasts of $22.88 billion. This strong performance led RTX to raise its full-year 2026 adjusted EPS guidance to $7.10-$7.25 (from $6.70-$6.90) and adjusted sales guidance to $95.0-$96.0 billion (from $92.5-$93.5 billion).
2. The company achieved a record backlog of $289 billion as of June 30, 2026, representing a 22% increase year-over-year. This substantial backlog includes $170 billion in commercial aerospace orders and $119 billion in defense, providing strong revenue visibility.
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RTX (RTX) stock has gained about 10% since 3/31/2026 because of the following key factors:
1. RTX significantly surpassed Wall Street's expectations in fiscal Q2 2026, reporting adjusted earnings per share of $1.89, a 21% increase year-over-year, against an estimated $1.66. The company also reported adjusted sales of $24.7 billion, up 14% year-over-year and 16% organically, exceeding forecasts of $22.88 billion. This strong performance led RTX to raise its full-year 2026 adjusted EPS guidance to $7.10-$7.25 (from $6.70-$6.90) and adjusted sales guidance to $95.0-$96.0 billion (from $92.5-$93.5 billion).
2. The company achieved a record backlog of $289 billion as of June 30, 2026, representing a 22% increase year-over-year. This substantial backlog includes $170 billion in commercial aerospace orders and $119 billion in defense, providing strong revenue visibility.
3. RTX experienced robust organic sales growth across its key segments in fiscal Q2 2026, with overall organic sales increasing 16%. This was driven by double-digit growth in the commercial aftermarket (18% organically) due to sustained air travel and commercial original equipment (9%), alongside strong defense sales growth (16% organically) fueled by increased global security spending and demand for air and missile defense systems, particularly from international and European customers.
4. Improved operational efficiency and a favorable mix contributed to adjusted segment operating profit increasing 18% to $3.2 billion, with segment margins expanding by 40 basis points in fiscal Q2 2026. This operational strength culminated in a strong free cash flow of $2.9 billion for the quarter.
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Stock Movement Drivers
Fundamental Drivers
The 8.9% change in RTX stock from 3/31/2026 to 7/23/2026 was primarily driven by a 5.7% change in the company's Net Income Margin (%).| (LTM values as of) | 3312026 | 7232026 | Change |
|---|---|---|---|
| Stock Price ($) | 192.10 | 209.16 | 8.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 88,603 | 90,373 | 2.0% |
| Net Income Margin (%) | 7.6% | 8.0% | 5.7% |
| P/E Multiple | 38.4 | 38.9 | 1.2% |
| Shares Outstanding (Mil) | 1,345 | 1,348 | -0.2% |
| Cumulative Contribution | 8.9% |
Market Drivers
3/31/2026 to 7/23/2026| Return | Correlation | |
|---|---|---|
| RTX | 8.9% | |
| Market (SPY) | 13.5% | 2.1% |
| Sector (XLI) | 12.5% | 45.0% |
Fundamental Drivers
The 14.9% change in RTX stock from 12/31/2025 to 7/23/2026 was primarily driven by a 5.1% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 12312025 | 7232026 | Change |
|---|---|---|---|
| Stock Price ($) | 182.03 | 209.16 | 14.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 85,988 | 90,373 | 5.1% |
| Net Income Margin (%) | 7.7% | 8.0% | 4.7% |
| P/E Multiple | 37.1 | 38.9 | 4.8% |
| Shares Outstanding (Mil) | 1,343 | 1,348 | -0.4% |
| Cumulative Contribution | 14.9% |
Market Drivers
12/31/2025 to 7/23/2026| Return | Correlation | |
|---|---|---|
| RTX | 14.9% | |
| Market (SPY) | 8.5% | 12.8% |
| Sector (XLI) | 17.6% | 47.8% |
Fundamental Drivers
The 45.5% change in RTX stock from 6/30/2025 to 7/23/2026 was primarily driven by a 42.7% change in the company's Net Income Margin (%).| (LTM values as of) | 6302025 | 7232026 | Change |
|---|---|---|---|
| Stock Price ($) | 143.73 | 209.16 | 45.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 81,739 | 90,373 | 10.6% |
| Net Income Margin (%) | 5.6% | 8.0% | 42.7% |
| P/E Multiple | 41.8 | 38.9 | -7.0% |
| Shares Outstanding (Mil) | 1,337 | 1,348 | -0.8% |
| Cumulative Contribution | 45.5% |
Market Drivers
6/30/2025 to 7/23/2026| Return | Correlation | |
|---|---|---|
| RTX | 45.5% | |
| Market (SPY) | 20.5% | 20.1% |
| Sector (XLI) | 24.6% | 48.8% |
Fundamental Drivers
The 127.5% change in RTX stock from 6/30/2023 to 7/23/2026 was primarily driven by a 60.1% change in the company's P/E Multiple.| (LTM values as of) | 6302023 | 7232026 | Change |
|---|---|---|---|
| Stock Price ($) | 91.94 | 209.16 | 127.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 68,572 | 90,373 | 31.8% |
| Net Income Margin (%) | 8.1% | 8.0% | -0.6% |
| P/E Multiple | 24.3 | 38.9 | 60.1% |
| Shares Outstanding (Mil) | 1,462 | 1,348 | 8.5% |
| Cumulative Contribution | 127.5% |
Market Drivers
6/30/2023 to 7/23/2026| Return | Correlation | |
|---|---|---|
| RTX | 127.5% | |
| Market (SPY) | 72.4% | 26.7% |
| Sector (XLI) | 76.6% | 45.5% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| RTX Return | 23% | 20% | -14% | 41% | 61% | 7% | 208% |
| Peers Return | 16% | 18% | 24% | 10% | 33% | 4% | 157% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 10% | 100% |
Monthly Win Rates [3] | |||||||
| RTX Win Rate | 67% | 58% | 42% | 58% | 75% | 71% | |
| Peers Win Rate | 48% | 60% | 55% | 58% | 60% | 57% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 43% | |
Max Drawdowns [4] | |||||||
| RTX Max Drawdown | -13% | -22% | -33% | -10% | -16% | -19% | |
| Peers Max Drawdown | -18% | -27% | -19% | -23% | -18% | -24% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: LMT, NOC, BA, GD, GE. See RTX Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 7/23/2026 (YTD)
How Low Can It Go
| Event | RTX | S&P 500 |
|---|---|---|
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -19.8% | -9.5% |
| % Gain to Breakeven | 24.7% | 10.5% |
| Time to Breakeven | 97 days | 24 days |
| 2020 COVID-19 Crash | ||
| % Loss | -50.3% | -33.7% |
| % Gain to Breakeven | 101.0% | 50.9% |
| Time to Breakeven | 410 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -27.2% | -19.2% |
| % Gain to Breakeven | 37.4% | 23.8% |
| Time to Breakeven | 120 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -14.2% | -12.2% |
| % Gain to Breakeven | 16.6% | 13.9% |
| Time to Breakeven | 14 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -19.3% | -6.8% |
| % Gain to Breakeven | 23.9% | 7.3% |
| Time to Breakeven | 62 days | 15 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -23.1% | -17.9% |
| % Gain to Breakeven | 30.0% | 21.8% |
| Time to Breakeven | 216 days | 123 days |
In The Past
RTX's stock fell -8.8% during the 2025 US Tariff Shock. Such a loss loss requires a 9.7% gain to breakeven.
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Asset Allocation
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| Event | RTX | S&P 500 |
|---|---|---|
| 2020 COVID-19 Crash | ||
| % Loss | -50.3% | -33.7% |
| % Gain to Breakeven | 101.0% | 50.9% |
| Time to Breakeven | 410 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -27.2% | -19.2% |
| % Gain to Breakeven | 37.4% | 23.8% |
| Time to Breakeven | 120 days | 105 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -23.1% | -17.9% |
| % Gain to Breakeven | 30.0% | 21.8% |
| Time to Breakeven | 216 days | 123 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -50.3% | -53.4% |
| % Gain to Breakeven | 101.2% | 114.4% |
| Time to Breakeven | 382 days | 1085 days |
In The Past
RTX's stock fell -8.8% during the 2025 US Tariff Shock. Such a loss loss requires a 9.7% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About RTX (RTX)
Raytheon Technologies Corporation (RTX) is a prominent global aerospace and defense company that delivers advanced systems and services to commercial, military, and government customers worldwide. The company operates through four primary segments, each contributing to its comprehensive portfolio across critical areas of aviation, intelligence, and defense technology.
RTX's Collins Aerospace Systems segment provides essential aerospace products, aftermarket services, and cabin solutions for aircraft manufacturers, airlines, business aviation, and defense operations. Its Pratt & Whitney segment is a leading supplier of aircraft engines and auxiliary power units for commercial, military, and general aviation clients. The Raytheon Intelligence & Space segment focuses on integrated space, communication, and sensor systems, alongside cyber and software solutions, primarily serving intelligence, defense, and federal customers.
Rounding out its offerings, the Raytheon Missiles & Defense segment designs and produces advanced air and missile defense systems, radars, and command, control, and intelligence solutions. This segment primarily serves U.S. and foreign government customers, providing crucial defensive and combat capabilities. Overall, RTX is a key player in both the commercial aerospace infrastructure and advanced defense technology sectors.
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- A combination of GE Aviation (for engines and aircraft parts) and Lockheed Martin (for defense systems).
- The Honeywell of aerospace and defense, supplying a vast array of high-tech components, engines, and systems for commercial and military use.
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- Aerospace Systems: Develops and supports various aerospace products including cabin interiors, communication systems, and airborne intelligence, surveillance, and reconnaissance (ISR) systems.
- Aircraft Engines: Supplies engines for commercial, military, business jet, and general aviation aircraft.
- Auxiliary Power Units (APUs): Produces and services auxiliary power units for military and commercial applications.
- Integrated Space, Communication, and Sensor Systems: Provides complex systems for space, communication, and sensor-based missions.
- Cyber and Software Solutions: Offers specialized solutions in cybersecurity and software development.
- Air and Missile Defense Systems: Designs and sustains integrated systems for defending against air and missile threats.
- Defensive and Combat Solutions: Delivers solutions for various defensive and combat operations.
- Radar Systems: Manufactures land-based and sea-based radar systems.
- Command, Control, Communications, and Intelligence (C3I) Solutions: Provides comprehensive solutions for military command, control, communications, and intelligence.
- Naval and Undersea Sensor Solutions: Develops advanced sensor technologies for naval and underwater environments.
- Aerospace Aftermarket Services: Offers spare parts, repair, engineering support, and training for aerospace and defense products.
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Raytheon Technologies Corporation (RTX) primarily serves government entities and various commercial companies worldwide. The company does not primarily sell to individuals.
Major Customers:
- Government Entities: RTX provides systems and services to commercial, military, and government customers globally. This includes the U.S. government (such as intelligence, defense, and federal agencies) and foreign government customers for integrated space, communication, and sensor systems; integrated air and missile defense systems; defensive and combat solutions; radars; and command, control, communications, and intelligence solutions.
- Commercial Companies: This category encompasses a range of commercial enterprises that procure aerospace and defense products and services from RTX. These include:
- Aircraft Manufacturers: Customers who integrate RTX's aerospace products, such as aircraft engines and various cabin interior, communications, and aviation systems, into their aircraft.
- Airlines: Commercial and general aviation customers who purchase aircraft engines, aftermarket services, and various aerospace systems for their fleets.
- Commercial Space Operations & Other Commercial Customers: Companies involved in commercial space operations, as well as other commercial entities requiring integrated space, communication, sensor systems, cyber, and software solutions.
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Howmet Aerospace Inc. (HWM)
TransDigm Group Incorporated (TDG)
L3Harris Technologies, Inc. (LHX)
Parker-Hannifin Corporation (PH)
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Christopher T. Calio
Chairman & Chief Executive Officer
Christopher T. Calio was appointed Chief Executive Officer of RTX in May 2024 and became Chairman in April 2025. He joined the former United Technologies Corporation (UTC) in 2005 and has over 10 years of leadership experience within the company's aerospace businesses. Prior to his current role, Calio served as President of Pratt & Whitney, and before that, President of Pratt & Whitney's Commercial Engines business from January 2017 through 2019. He was also the chief of staff for the Chairman and CEO of United Technologies. Notably, Calio led Pratt & Whitney's Commercial Engines Legal Department during the development and launch of the Airbus A320neo program and played a key role in the acquisition of Rolls-Royce's share in the International Aero Engines collaboration. He also served as Vice President and General Counsel for UTC Aerospace Systems, now known as Collins Aerospace. He holds a bachelor's degree in political science from Trinity College, and both an MBA and law degree from the University of Connecticut.
Neil G. Mitchill, Jr.
Chief Financial Officer
Neil G. Mitchill, Jr. serves as the Chief Financial Officer of RTX, a position he was appointed to in April 2021. His responsibilities include financial reporting and controls, planning and analysis, investor relations, internal audit, tax, and treasury. Mitchill joined United Technologies Corp. (UTC) in 2014 as Vice President of Global Financial Services. He progressed through various financial leadership roles at UTC, including Corporate Vice President, Controller in 2015, and Vice President and CFO of Pratt & Whitney in 2016. In 2019, he became the acting Senior Vice President and CFO of UTC, a role he held until the merger with Raytheon Company in 2020, after which he was appointed Corporate Vice President, Financial Planning & Analysis and Investor Relations for Raytheon Technologies. Before joining UTC, Mitchill spent 17 years at PricewaterhouseCoopers LLP, where he was a lead partner and provided assurance and business advisory services for global industrial products companies. He is a certified public accountant and holds a bachelor's degree in accountancy from Providence College.
Shane G. Eddy
President, Pratt & Whitney
Shane G. Eddy was appointed President of Pratt & Whitney, an RTX business, on March 1, 2022. With over 35 years of experience in the aerospace industry, he leads a business focused on designing, manufacturing, and servicing aircraft engines and auxiliary power units. Prior to his current role, Eddy was Pratt & Whitney's Senior Vice President and Chief Operations Officer. He joined Pratt & Whitney in 2016 from GE Aviation, where he served as Vice President and General Manager for Turboshaft/Turboprop Engines. Before his time at GE, Eddy spent six years at Sikorsky Aircraft Corporation, holding positions as Senior Vice President, Operations, and later as President, Commercial Systems and Services. His career also includes 14 years at Bell Helicopter Textron, where he held leadership roles such as Executive Director, Commercial Helicopter Programs, and Senior Vice President, Customer Support & Chief Services Officer. Eddy holds an MBA from Concordia University, Quebec, and an undergraduate degree from Canadore College, Ontario.
Vincent M. Campisi
Chief Digital Officer and Senior Vice President of Enterprise Services
Vincent M. Campisi is the Chief Digital Officer and leader of the Enterprise Services division at RTX, directing the company's digital strategy and global business services. He joined RTX (then United Technologies Corporation) in 2016, bringing 25 years of experience in the aerospace and defense, energy, financial services, and technology sectors. Before joining UTC, Campisi held multiple leadership roles at General Electric starting in 1999, including Chief Operating Officer at GE Digital, Chief Information Officer and Quality Leader at GE Vernova, general manager for cloud services, and CIO for GE Software. His work focuses on strengthening cybersecurity, maximizing productivity through information technology, and implementing enhanced software and data analytics practices. He earned a Bachelor's Degree in Business Administration and Management from the University at Albany.
Phil Jasper
President, Raytheon
Phil Jasper was appointed President of Raytheon, an RTX business, on January 4, 2024, and is a member of the RTX senior leadership team. With 31 years of experience in the aerospace and defense industry, he is responsible for leading Raytheon's franchises in missile defense, air-to-air missiles, fire control radars, and electro-optical/infra-red systems. In 2018, Jasper was named president of Collins Aerospace's Mission Systems strategic business unit, where he was responsible for delivering military, government, and civil solutions globally. He has a background in transitioning commercial aerospace technologies to the defense sector, contributing to innovations in battlefield communications and networking solutions, and designing, developing, and integrating mission-specific capabilities for military aircraft.
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Key Risks to RTX Business
- Pratt & Whitney GTF Engine Crisis: Raytheon Technologies faces significant financial charges due to the Pratt & Whitney Geared Turbofan (GTF) engine crisis, which includes airline compensation and expedited maintenance. This issue also carries the risk of long-term market share erosion on future narrow-body aircraft projects.
- Raytheon Margin Dilution on Fixed-Price Production Increase: The company is experiencing operating margin compression within its Raytheon segments despite revenue growth. This is attributed to lower-margin fixed-price contracts replacing more mature, high-margin programs, leading to potential negative earnings per share revisions. RTX's 10-K filing identifies cost overruns on fixed-price contracts as a primary business risk.
- Dependence on Government Contracts and Geopolitical/Regulatory Changes: A substantial portion of RTX's revenue is derived from contracts with the U.S. government and other international governments. This reliance exposes the company to risks associated with shifts in defense spending, budgetary constraints, political factors, and the potential for contract terminations or delays. Furthermore, geopolitical tensions, regulatory changes, trade policies, sanctions, and export controls can significantly impact RTX's global operations and international sales.
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Raytheon Technologies Corporation (RTX) operates across diverse and substantial addressable markets within the aerospace and defense sectors. The estimated market sizes for its primary products and services are outlined below:
Collins Aerospace Systems
- Aircraft Cabin Interior Market: The global aircraft cabin interior market was valued at approximately USD 41.10 billion in 2025 and is projected to grow to USD 83.80 billion by 2034.
- Aircraft Communication Systems Market: The global aircraft communication system market size was valued at USD 18.50 billion in 2025 and is projected to grow to USD 38.70 billion by 2034.
- Aerospace Electronics Market: The global aerospace electronics market size was approximately USD 127.20 billion in 2025 and is predicted to increase to USD 237.33 billion by 2035.
Pratt & Whitney
- Aircraft Engine Market: The global aircraft engine market size is expected to be valued at USD 118.53 billion in 2025 and is anticipated to reach around USD 251.79 billion by 2035.
- Military Aircraft Engine Market: The global military aircraft engine market size was valued at around USD 34.29 billion in 2025 and is projected to reach USD 67.19 billion by 2032.
- Aerospace and Military Auxiliary Power Unit (APU) Market: The global aerospace and military APU market is estimated at approximately USD 4.72 billion in 2025 and is projected to reach about USD 7.02 billion by 2035.
Raytheon Intelligence & Space
- Intelligence, Surveillance, and Reconnaissance (ISR) Market: The global Intelligence, Surveillance, and Reconnaissance (ISR) market was valued at approximately USD 42 billion in 2024 and is expected to reach around USD 71.2 billion by 2034.
- Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) Market: The global C4ISR market was valued at USD 126.2 billion in 2024 and is projected to reach USD 216 billion by 2034.
- Defense Electronics Market: The global defense electronics market was valued at USD 175.2 billion in 2024 and is projected to reach USD 302.8 billion by 2034.
Raytheon Missiles & Defense
- Air Defense System Market: The global air defense system market was valued at USD 46.3 billion in 2024 and is estimated to grow to USD 80.1 billion by 2034.
- Missile Defense System Market: The global missile defense system market was valued at USD 31.5 billion in 2024 and is projected to reach USD 54.2 billion by 2033.
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Here are 3-5 expected drivers of future revenue growth for RTX over the next 2-3 years:
- Conversion of Record Backlog and Sustained Demand: RTX boasts a record backlog of $268 billion as of January 2026, which represents nearly three years of future revenue already under contract. The company's focus on operational execution and converting this robust backlog into realized sales is a primary driver of sustained revenue growth.
- Growth in Commercial Aerospace Aftermarket: The recovery in global commercial air traffic and increasing flight hours are significantly boosting demand for commercial aerospace aftermarket services, including spare parts, maintenance, repair, and overhaul (MRO). This trend is expected to drive substantial revenue growth for Collins Aerospace and Pratt & Whitney segments, with management anticipating approximately 10% growth in the total commercial aftermarket for 2025.
- Increased Global Defense Spending and International Expansion: Escalating geopolitical tensions worldwide are leading to higher defense budgets, particularly in Europe, which is driving strong demand for RTX's advanced defense systems. International customers account for a significant portion of RTX's defense backlog, and continued large-scale contract wins for integrated air and missile defense systems, such as Patriot and LTAMDS, are expected to fuel revenue growth.
- Advancements in Product Development and Manufacturing Efficiency: RTX is investing in new capabilities, expanding production capacity, and leveraging digital factory initiatives to enhance productivity and meet growing customer needs. This includes a focus on developing next-generation technologies like hypersonics and increasing the volume of key defense systems and commercial engine deliveries (e.g., GTF and F135 engines), which will contribute to higher sales volumes and a favorable program mix.
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Capital Allocation Decisions (Last 3-5 Years)
Share Repurchases
- RTX authorized a $6 billion share repurchase program in December 2022, which superseded a prior authorization from December 2021.
- In October 2023, the company initiated a $10 billion accelerated share repurchase (ASR) program, as part of its commitment to return $36-$37 billion to shareholders through 2025.
- RTX repurchased $12.9 billion of shares in 2023 and $3.7 billion in 2024, contributing to over $33 billion returned to shareholders since the merger.
Outbound Investments
- Raytheon (an RTX business) launched RTX Ventures in April 2022, a new investment arm focused on strategic investments in companies developing transformational aerospace and defense technologies, making an initial investment in hypersonic aircraft developer Hermeus.
- The company made several acquisitions, including Seakr Engineering in September 2021 for advanced spacecraft electronics and NORSS in July 2022 for space services.
- In 2025, RTX invested $85 million across 19 companies through RTX Ventures, and in May 2024, Raytheon invested in UVAD Technologies for a supersonic Uncrewed Aerial Vehicle target.
Capital Expenditures
- RTX reported capital expenditures of approximately $2.4 billion in 2023 and $2.6 billion in 2024, with estimated CapEx for 2025 at $2.6 billion and projected CapEx of $3.1 billion for 2026.
- Total investments in capital expenditures and company/customer-funded research and development exceeded $10 billion in both 2024 and 2025, with a similar amount projected for 2026.
- The primary focus of these expenditures includes expanding production capacity, modernizing infrastructure, and advancing technologies in commercial aerospace and defense, such as missile and sensor production facilities.
Latest Trefis Analyses
| Title | Date | |
|---|---|---|
| DASHBOARDS | ||
| Get Paid 8.3% A Year To Hold RTX Stock You Already Own | 07/24/2026 | |
| RTX Earnings Notes | 07/22/2026 | |
| RTX Stock Hands $34 Bil Back - Worth a Look? | 06/06/2026 | |
| The Bear Case: How RTX Behaves During Market Shocks | 04/28/2026 | |
| RTX Stock Plummets 12% With 6-Day Losing Streak | 04/28/2026 | |
| RTX Stock 5-Day Losing Spree: Stock Falls 11% | 04/25/2026 | |
| RTX vs TransDigm: Which Stock Could Rally? | 04/25/2026 | |
| 3 Forces That Could Shake RTX Stock | 03/07/2026 | |
| RTX Stock Surged 60%, Here's Why | 03/03/2026 | |
| ARTICLES | ||
| How Will RTX Stock React To Its Upcoming Earnings? | 07/22/2026 | |
| Get Paid 8.1% A Year To Hold RTX Stock You Already Own | 07/02/2026 | |
| Stronger Bet Than ATI Stock: GE, RTX Deliver More | 06/23/2026 | |
| Pay Less, Gain More: RTX, TDG Top ATI Stock | 05/16/2026 | |
| Stronger Bet Than L3Harris Technologies Stock: RTX, GD Deliver More | 05/06/2026 |
Research & Analysis
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 365.39 |
| Mkt Cap | 147.8 |
| Rev LTM | 64,457 |
| Op Inc LTM | 6,465 |
| FCF LTM | 5,932 |
| FCF 3Y Avg | 4,746 |
| CFO LTM | 7,396 |
| CFO 3Y Avg | 6,123 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 10.0% |
| Rev Chg 3Y Avg | 10.1% |
| Rev Chg Q | 9.5% |
| QoQ Delta Rev Chg LTM | 2.2% |
| Op Inc Chg LTM | 17.3% |
| Op Inc Chg 3Y Avg | 10.4% |
| Op Mgn LTM | 10.5% |
| Op Mgn 3Y Avg | 9.6% |
| QoQ Delta Op Mgn LTM | 0.0% |
| CFO/Rev LTM | 12.1% |
| CFO/Rev 3Y Avg | 10.1% |
| FCF/Rev LTM | 8.7% |
| FCF/Rev 3Y Avg | 7.7% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 147.8 |
| P/S | 1.9 |
| P/Op Inc | 18.2 |
| P/EBIT | 22.4 |
| P/E | 33.1 |
| P/CFO | 21.6 |
| Total Yield | 4.8% |
| Dividend Yield | 1.4% |
| FCF Yield 3Y Avg | 3.5% |
| D/E | 0.1 |
| Net D/E | 0.1 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 6.7% |
| 3M Rtn | 12.6% |
| 6M Rtn | 1.1% |
| 12M Rtn | 27.9% |
| 3Y Rtn | 60.5% |
| 1M Excs Rtn | - |
| 3M Excs Rtn | - |
| 6M Excs Rtn | - |
| 12M Excs Rtn | - |
| 3Y Excs Rtn | - |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Pratt & Whitney | 32,916 | 28,066 | 18,296 | 20,530 | 18,150 |
| Collins Aerospace | 30,196 | 28,284 | 26,253 | 20,597 | 18,449 |
| Raytheon | 28,043 | 26,713 | 26,350 | ||
| Acquisition accounting adjustments | 0 | 0 | 0 | 0 | 0 |
| Corporate expenses and other unallocated items | 0 | 0 | 0 | 0 | 0 |
| Financial accounting standards (FAS)/cost accounting standards (CAS) operating adjustment | 0 | 0 | 0 | 0 | 0 |
| Eliminations and other | -2,552 | -2,325 | -1,979 | -3,228 | -2,930 |
| Raytheon Intelligence & Space | 14,312 | 15,180 | |||
| Raytheon Missiles & Defense | 14,863 | 15,539 | |||
| Total | 88,603 | 80,738 | 68,920 | 67,074 | 64,388 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Collins Aerospace | 4,923 | 4,135 | 3,825 | 2,343 | 1,759 |
| Raytheon | 3,227 | 2,594 | 2,379 | ||
| Pratt & Whitney | 2,596 | 2,015 | -1,455 | 1,075 | 454 |
| Financial accounting standards (FAS)/cost accounting standards (CAS) operating adjustment | 753 | 833 | 1,127 | 1,520 | 1,796 |
| Eliminations and other | 54 | -48 | -42 | -174 | -133 |
| Corporate expenses and other unallocated items | -248 | -933 | -275 | -318 | -552 |
| Acquisition accounting adjustments | -2,005 | -2,058 | -1,998 | -1,893 | -2,203 |
| Raytheon Intelligence & Space | 1,342 | 1,833 | |||
| Raytheon Missiles & Defense | 1,519 | 2,004 | |||
| Total | 9,300 | 6,538 | 3,561 | 5,414 | 4,958 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Collins Aerospace | 71,680 | 72,372 | 72,085 | 70,404 | 67,564 |
| Pratt & Whitney | 52,482 | 44,307 | 40,723 | 36,205 | 33,414 |
| Raytheon | 44,795 | 44,936 | 44,929 | 45,666 | |
| Corporate, eliminations and other | 2,122 | 1,246 | 4,132 | 6,589 | 10,115 |
| Raytheon Intelligence & Space | 21,545 | ||||
| Raytheon Missiles & Defense | 28,766 | ||||
| Total | 171,079 | 162,861 | 161,869 | 158,864 | 161,404 |
Price Behavior
| Market Price | $209.16 | |
| Market Cap ($ Bil) | 281.9 | |
| First Trading Date | 01/02/1970 | |
| Distance from 52W High | -1.0% | |
| 50 Days | 200 Days | |
| DMA Price | $185.52 | $185.30 |
| DMA Trend | up | up |
| Distance from DMA | 12.7% | 12.9% |
| 3M | 1YR | |
| Volatility | 30.1% | 25.5% |
| Downside Capture | -58.83 | 17.15 |
| Upside Capture | 24.64 | 50.11 |
| Correlation (SPY) | 6.9% | 23.9% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | -0.08 | 0.13 | 0.37 | 0.36 | 0.48 | 0.45 |
| Up Beta | 0.85 | 0.69 | 0.95 | 0.50 | 0.55 | 0.46 |
| Down Beta | -0.48 | -0.21 | -0.38 | 0.08 | 0.44 | 0.57 |
| Up Capture | 12% | 35% | 19% | 36% | 50% | 20% |
| Bmk +ve Days | 11 | 24 | 40 | 67 | 140 | 429 |
| Stock +ve Days | 11 | 22 | 31 | 64 | 137 | 398 |
| Down Capture | -49% | -17% | 36% | 46% | 42% | 51% |
| Bmk -ve Days | 10 | 17 | 23 | 58 | 112 | 321 |
| Stock -ve Days | 10 | 19 | 32 | 61 | 114 | 348 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with RTX | |
|---|---|---|---|---|
| RTX | 42.7% | 25.9% | 1.33 | - |
| Sector ETF (XLI) | 21.8% | 16.7% | 1.01 | 48.9% |
| Equity (SPY) | 18.5% | 12.7% | 1.06 | 19.8% |
| Gold (GLD) | 17.6% | 28.1% | 0.57 | 10.8% |
| Commodities (DBC) | 35.2% | 19.1% | 1.45 | -2.1% |
| Real Estate (VNQ) | 11.6% | 13.9% | 0.55 | 27.3% |
| Bitcoin (BTCUSD) | -45.1% | 42.9% | -1.28 | 17.7% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with RTX | |
|---|---|---|---|---|
| RTX | 22.4% | 24.3% | 0.80 | - |
| Sector ETF (XLI) | 13.8% | 17.6% | 0.61 | 55.8% |
| Equity (SPY) | 12.6% | 17.1% | 0.57 | 40.0% |
| Gold (GLD) | 16.8% | 18.4% | 0.74 | 10.0% |
| Commodities (DBC) | 9.8% | 19.5% | 0.39 | 17.2% |
| Real Estate (VNQ) | 2.6% | 18.9% | 0.03 | 37.2% |
| Bitcoin (BTCUSD) | 15.8% | 53.4% | 0.47 | 17.1% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with RTX | |
|---|---|---|---|---|
| RTX | 15.7% | 27.8% | 0.56 | - |
| Sector ETF (XLI) | 14.0% | 20.0% | 0.61 | 72.6% |
| Equity (SPY) | 14.9% | 17.9% | 0.71 | 57.6% |
| Gold (GLD) | 11.2% | 16.1% | 0.57 | 4.5% |
| Commodities (DBC) | 7.4% | 17.9% | 0.33 | 24.5% |
| Real Estate (VNQ) | 4.9% | 20.7% | 0.20 | 53.1% |
| Bitcoin (BTCUSD) | 58.7% | 66.2% | 0.99 | 11.5% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 7/23/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 4/21/2026 | -4.4% | -11.4% | -10.9% |
| 1/27/2026 | 3.7% | 3.6% | 1.3% |
| 10/21/2025 | 7.7% | 11.5% | 8.7% |
| 7/22/2025 | -1.6% | 3.0% | 1.8% |
| 4/22/2025 | -9.8% | -1.0% | 8.8% |
| 1/28/2025 | 2.6% | 3.9% | 2.3% |
| 10/22/2024 | -0.3% | -0.4% | -5.0% |
| 7/25/2024 | 8.2% | 12.1% | 13.2% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 11 | 14 | 16 |
| # Negative | 13 | 10 | 8 |
| Median Positive | 3.3% | 3.7% | 6.6% |
| Median Negative | -1.6% | -4.2% | -5.4% |
| Max Positive | 8.2% | 12.1% | 23.2% |
| Max Negative | -10.2% | -11.4% | -11.4% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 4/21/2026 | -4.4% | -11.4% | -10.9% |
| 1/27/2026 | 3.7% | 3.6% | 1.3% |
| 10/21/2025 | 7.7% | 11.5% | 8.7% |
| 7/22/2025 | -1.6% | 3.0% | 1.8% |
| 4/22/2025 | -9.8% | -1.0% | 8.8% |
| 1/28/2025 | 2.6% | 3.9% | 2.3% |
| 10/22/2024 | -0.3% | -0.4% | -5.0% |
| 7/25/2024 | 8.2% | 12.1% | 13.2% |
| 4/23/2024 | -0.2% | 0.9% | 4.4% |
| 1/23/2024 | 5.3% | 6.0% | 6.1% |
| 10/24/2023 | 7.2% | 7.4% | 7.7% |
| 7/25/2023 | -10.2% | -9.4% | -11.4% |
| 4/25/2023 | -1.3% | -2.1% | -7.6% |
| 1/24/2023 | 3.3% | 2.6% | 4.4% |
| 10/25/2022 | -1.5% | 5.7% | 8.6% |
| 7/26/2022 | -4.6% | -1.4% | -1.7% |
| 4/26/2022 | -0.4% | -5.4% | -5.9% |
| 1/25/2022 | 2.5% | 2.3% | 4.7% |
| 10/26/2021 | -2.3% | -3.0% | -3.8% |
| 7/27/2021 | 2.6% | 0.8% | -0.0% |
| 4/27/2021 | 2.2% | 3.9% | 7.1% |
| 1/26/2021 | 1.4% | 1.0% | 17.2% |
| 10/27/2020 | -7.0% | -8.3% | 23.2% |
| 7/28/2020 | -0.1% | -5.9% | 0.5% |
| SUMMARY STATS | |||
| # Positive | 11 | 14 | 16 |
| # Negative | 13 | 10 | 8 |
| Median Positive | 3.3% | 3.7% | 6.6% |
| Median Negative | -1.6% | -4.2% | -5.4% |
| Max Positive | 8.2% | 12.1% | 23.2% |
| Max Negative | -10.2% | -11.4% | -11.4% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 04/21/2026 | 10-Q |
| 12/31/2025 | 02/06/2026 | 10-K |
| 09/30/2025 | 10/21/2025 | 10-Q |
| 06/30/2025 | 07/22/2025 | 10-Q |
| 03/31/2025 | 04/22/2025 | 10-Q |
| 12/31/2024 | 02/03/2025 | 10-K |
| 09/30/2024 | 10/22/2024 | 10-Q |
| 06/30/2024 | 07/25/2024 | 10-Q |
| 03/31/2024 | 04/23/2024 | 10-Q |
| 12/31/2023 | 02/05/2024 | 10-K |
| 09/30/2023 | 10/24/2023 | 10-Q |
| 06/30/2023 | 07/25/2023 | 10-Q |
| 03/31/2023 | 04/25/2023 | 10-Q |
| 12/31/2022 | 02/07/2023 | 10-K |
| 09/30/2022 | 10/25/2022 | 10-Q |
| 06/30/2022 | 07/26/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 04/21/2026 | 10-Q |
| 12/31/2025 | 02/06/2026 | 10-K |
| 09/30/2025 | 10/21/2025 | 10-Q |
| 06/30/2025 | 07/22/2025 | 10-Q |
| 03/31/2025 | 04/22/2025 | 10-Q |
| 12/31/2024 | 02/03/2025 | 10-K |
| 09/30/2024 | 10/22/2024 | 10-Q |
| 06/30/2024 | 07/25/2024 | 10-Q |
| 03/31/2024 | 04/23/2024 | 10-Q |
| 12/31/2023 | 02/05/2024 | 10-K |
| 09/30/2023 | 10/24/2023 | 10-Q |
| 06/30/2023 | 07/25/2023 | 10-Q |
| 03/31/2023 | 04/25/2023 | 10-Q |
| 12/31/2022 | 02/07/2023 | 10-K |
| 09/30/2022 | 10/25/2022 | 10-Q |
| 06/30/2022 | 07/26/2022 | 10-Q |
| 03/31/2022 | 04/26/2022 | 10-Q |
| 12/31/2021 | 02/11/2022 | 10-K |
| 09/30/2021 | 10/26/2021 | 10-Q |
| 06/30/2021 | 07/27/2021 | 10-Q |
| 03/31/2021 | 04/27/2021 | 10-Q |
| 12/31/2020 | 02/08/2021 | 10-K |
| 09/30/2020 | 10/27/2020 | 10-Q |
| 06/30/2020 | 07/29/2020 | 10-Q |
| 03/31/2020 | 05/07/2020 | 10-Q |
| 12/31/2019 | 02/06/2020 | 10-K |
| 09/30/2019 | 10/25/2019 | 10-Q |
| 06/30/2019 | 07/26/2019 | 10-Q |
Recent Forward Guidance
Updated 7/8/2026Latest: Q1 2026 Earnings Reported 4/21/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Adjusted Sales | 92.50 Bil | 93.00 Bil | 93.50 Bil | 0.5% | Raised | Guidance: 92.50 Bil for 2026 | |
| 2026 Organic Sales Growth | 5.0% | 5.5% | 6.0% | 0 | Affirmed | Guidance: 5.5% for 2026 | |
| 2026 Adjusted EPS | 6.7 | 6.8 | 6.9 | 1.5% | Raised | Guidance: 6.7 for 2026 | |
| 2026 Free Cash Flow | 8.25 Bil | 8.50 Bil | 8.75 Bil | 0 | Affirmed | Guidance: 8.50 Bil for 2026 | |
Prior: Q4 2025 Earnings Reported 1/27/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Adjusted Sales | 92.00 Bil | 92.50 Bil | 93.00 Bil | 6.6% | Higher New | Actual: 86.75 Bil for 2025 | |
| 2026 Organic Sales Growth | 5.0% | 5.5% | 6.0% | -3.0% | Lower New | Actual: 8.5% for 2025 | |
| 2026 Adjusted EPS | 6.6 | 6.7 | 6.8 | 8.9% | Higher New | Actual: 6.15 for 2025 | |
| 2026 Free Cash Flow | 8.25 Bil | 8.50 Bil | 8.75 Bil | 17.2% | Higher New | Actual: 7.25 Bil for 2025 | |
Q3 2025 Earnings Reported 10/21/2025
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2025 Adjusted Sales | 86.50 Bil | 86.75 Bil | 87.00 Bil | 1.9% | Raised | Guidance: 85.12 Bil for 2025 | |
| 2025 Organic Sales Growth | 8.0% | 8.5% | 9.0% | 2.0% | Raised | Guidance: 6.5% for 2025 | |
| 2025 Adjusted EPS | 6.1 | 6.15 | 6.2 | 4.7% | Raised | Guidance: 5.88 for 2025 | |
| 2025 Free Cash Flow | 7.00 Bil | 7.25 Bil | 7.50 Bil | 0 | Affirmed | Guidance: 7.25 Bil for 2025 | |
Insider Activity
Updated 7/6/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Williams, Dantaya M | EVP & Chief HR Officer | Direct | Sell | 2232026 | 202.83 | 12,713 | 2,578,611 | 3,397,341 | Form |
| 2 | Mitchill, Neil G JR | EVP, Chief Financial Officer | Direct | Sell | 2232026 | 205.56 | 35,755 | 7,349,900 | 12,242,502 | Form |
| 3 | Maharajh, Ramsaran | EVP and General Counsel | Direct | Sell | 2232026 | 204.65 | 15,124 | 3,095,124 | 2,698,103 | Form |
| 4 | Calio, Christopher T | Chairman, President and CEO | Direct | Sell | 2232026 | 203.80 | 63,568 | 12,955,182 | 18,396,689 | Form |
| 5 | Dasilva, Kevin G | Senior VP and Treasurer | Direct | Sell | 2132026 | 201.30 | 8,136 | 1,637,745 | 5,455,540 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Williams, Dantaya M | EVP & Chief HR Officer | Direct | Sell | 2232026 | 202.83 | 12,713 | 2,578,611 | 3,397,341 | Form |
| 2 | Mitchill, Neil G JR | EVP, Chief Financial Officer | Direct | Sell | 2232026 | 205.56 | 35,755 | 7,349,900 | 12,242,502 | Form |
| 3 | Maharajh, Ramsaran | EVP and General Counsel | Direct | Sell | 2232026 | 204.65 | 15,124 | 3,095,124 | 2,698,103 | Form |
| 4 | Calio, Christopher T | Chairman, President and CEO | Direct | Sell | 2232026 | 203.80 | 63,568 | 12,955,182 | 18,396,689 | Form |
| 5 | Dasilva, Kevin G | Senior VP and Treasurer | Direct | Sell | 2132026 | 201.30 | 8,136 | 1,637,745 | 5,455,540 | Form |
| 6 | Eddy, Shane G | President, P&W | Direct | Sell | 2132026 | 199.16 | 17,527 | Form | ||
| 7 | Johnson, Amy L | Senior VP and Controller | Direct | Sell | 2102026 | 195.03 | 8,088 | 1,577,403 | 2,149,809 | Form |
| 8 | Calio, Christopher T | Chairman, President and CEO | Direct | Sell | 10292025 | 178.32 | 4,813 | 858,278 | 14,534,914 | Form |
| 9 | Mitchill, Neil G JR | EVP, Chief Financial Officer | Direct | Sell | 10282025 | 180.15 | 4,849 | 873,528 | 10,728,775 | Form |
| 10 | Atkinson, Tracy A | Direct | Sell | 10282025 | 178.91 | 2,800 | 500,948 | 729,953 | Form | |
| 11 | Eddy, Shane G | President, P&W | Direct | Sell | 8282025 | 159.79 | 25,968 | Form | ||
| 12 | Brunk, Troy D | President, Collins Aerospace | Direct | Sell | 8132025 | 155.20 | 7,654 | 1,187,908 | 2,551,765 | Form |
| 13 | Jasper, Philip J | President, Raytheon | Direct | Sell | 8062025 | 157.82 | 12,847 | 2,027,521 | 2,790,929 | Form |
| 14 | Dasilva, Kevin G | Corporate VP and Treasurer | Direct | Sell | 7282025 | 156.20 | 8,704 | 1,359,574 | 4,686,655 | Form |
| 15 | Maharajh, Ramsaran | EVP and General Counsel | Direct | Sell | 7252025 | 152.26 | 1,462 | 222,600 | 2,007,363 | Form |
Investor Activity (13F)
Updated Jul 24, 2026Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| Gladstone Capital Management LLP | $116.2 Mil | 11.7% | 32 | TRIM -7.5% | 13F |
| J. Stern & Co. LLP | $58.3 Mil | 5.6% | 49 | TRIM -99.5% | 13F |
| Mark Asset Management LP | $40.6 Mil | 5.4% | 31 | TRIM -5.6% | 13F |
| Castle Hook Partners LP | $248.2 Mil | 5.0% | 44 | New | 13F |
| Haverford Financial Services, Inc. | $16.7 Mil | 5.0% | 46 | Hold | 13F |
| Carmel Capital Management L.L.C. | $15.5 Mil | 4.4% | 25 | Hold | 13F |
| Saybrook Capital /NC | $16.0 Mil | 4.3% | 42 | Hold | 13F |
| Kinetic Partners Management, LP | $76.5 Mil | 4.3% | 49 | New | 13F |
| General Pension Society PZU Joint Stock Co | $27.4 Mil | 4.2% | 15 | Hold | 13F |
| Focused Investors LLC | $107.1 Mil | 3.5% | 22 | TRIM -26.9% | 13F |
| Lone Peak Global Investors LLC | $17.8 Mil | 3.0% | 42 | TRIM -18.7% | 13F |
| Saratoga Research & Investment Management | $50.0 Mil | 2.8% | 46 | TRIM -17.2% | 13F |
| Bayberry Capital Partners LP | $7.0 Mil | 2.3% | 28 | New | 13F |
| Archon Partners LLC | $19.5 Mil | 2.3% | 39 | Hold | 13F |
| Element Capital Management LLC | $5.8 Mil | 2.3% | 34 | New | 13F |
| Sanders Capital, LLC | $1.8 Bil | 2.2% | 44 | Hold | 13F |
| Cincinnati Specialty Underwriters Insurance CO | $5.0 Mil | 1.2% | 46 | Hold | 13F |
| Appaloosa LP | $66.0 Mil | 1.1% | 31 | TRIM -31.6% | 13F |
| Teewinot Capital Advisers, L.L.C. | $11.6 Mil | 0.9% | 33 | ADD +54.5% | 13F |
| Hancock Prospecting Pty Ltd | $24.7 Mil | 0.7% | 36 | New | 13F |
| BSN CAPITAL PARTNERS Ltd | $11.3 Mil | 0.5% | 41 | New | 13F |
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| Castle Hook Partners LP | $248.2 Mil | 5.0% | 44 | New | 13F |
| Kinetic Partners Management, LP | $76.5 Mil | 4.3% | 49 | New | 13F |
| Hancock Prospecting Pty Ltd | $24.7 Mil | 0.7% | 36 | New | 13F |
| BSN CAPITAL PARTNERS Ltd | $11.3 Mil | 0.5% | 41 | New | 13F |
| Bayberry Capital Partners LP | $7.0 Mil | 2.3% | 28 | New | 13F |
| Element Capital Management LLC | $5.8 Mil | 2.3% | 34 | New | 13F |
| Teewinot Capital Advisers, L.L.C. | $11.6 Mil | 0.9% | 33 | ADD +54.5% | 13F |
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| J. Stern & Co. LLP | $58.3 Mil | 5.6% | 49 | TRIM -99.5% | 13F |
| Appaloosa LP | $66.0 Mil | 1.1% | 31 | TRIM -31.6% | 13F |
| Focused Investors LLC | $107.1 Mil | 3.5% | 22 | TRIM -26.9% | 13F |
| Lone Peak Global Investors LLC | $17.8 Mil | 3.0% | 42 | TRIM -18.7% | 13F |
| Saratoga Research & Investment Management | $50.0 Mil | 2.8% | 46 | TRIM -17.2% | 13F |
| Gladstone Capital Management LLP | $116.2 Mil | 11.7% | 32 | TRIM -7.5% | 13F |
| Mark Asset Management LP | $40.6 Mil | 5.4% | 31 | TRIM -5.6% | 13F |
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| Sanders Capital, LLC | $1.8 Bil | 2.2% | 44 | Hold | 13F |
| Castle Hook Partners LP | $248.2 Mil | 5.0% | 44 | New | 13F |
| Gladstone Capital Management LLP | $116.2 Mil | 11.7% | 32 | TRIM -7.5% | 13F |
| Focused Investors LLC | $107.1 Mil | 3.5% | 22 | TRIM -26.9% | 13F |
| Kinetic Partners Management, LP | $76.5 Mil | 4.3% | 49 | New | 13F |
| Appaloosa LP | $66.0 Mil | 1.1% | 31 | TRIM -31.6% | 13F |
| J. Stern & Co. LLP | $58.3 Mil | 5.6% | 49 | TRIM -99.5% | 13F |
| Saratoga Research & Investment Management | $50.0 Mil | 2.8% | 46 | TRIM -17.2% | 13F |
| Mark Asset Management LP | $40.6 Mil | 5.4% | 31 | TRIM -5.6% | 13F |
| General Pension Society PZU Joint Stock Co | $27.4 Mil | 4.2% | 15 | Hold | 13F |
| Hancock Prospecting Pty Ltd | $24.7 Mil | 0.7% | 36 | New | 13F |
| Archon Partners LLC | $19.5 Mil | 2.3% | 39 | Hold | 13F |
| Lone Peak Global Investors LLC | $17.8 Mil | 3.0% | 42 | TRIM -18.7% | 13F |
| Haverford Financial Services, Inc. | $16.7 Mil | 5.0% | 46 | Hold | 13F |
| Saybrook Capital /NC | $16.0 Mil | 4.3% | 42 | Hold | 13F |
| Carmel Capital Management L.L.C. | $15.5 Mil | 4.4% | 25 | Hold | 13F |
| Teewinot Capital Advisers, L.L.C. | $11.6 Mil | 0.9% | 33 | ADD +54.5% | 13F |
| BSN CAPITAL PARTNERS Ltd | $11.3 Mil | 0.5% | 41 | New | 13F |
| Bayberry Capital Partners LP | $7.0 Mil | 2.3% | 28 | New | 13F |
| Element Capital Management LLC | $5.8 Mil | 2.3% | 34 | New | 13F |
| Cincinnati Specialty Underwriters Insurance CO | $5.0 Mil | 1.2% | 46 | Hold | 13F |
RTX Trade Sentinel
Constructive
CONVICTION RATIONALE
A record $271 billion backlog, growing 25% annually, provides exceptional revenue visibility. This is balanced by operational challenges, chiefly the Pratt & Whitney engine issue. However, leading indicators like a 15% reduction in grounded aircraft and a 23% rise in MRO output suggest the recovery plan is gaining traction, supporting a constructive outlook.
STOCK ARCHETYPE
Backlog-Driven Industrial(Backlog Conversion Rate * Beginning Backlog) + New Bookings Mix shift towards high-margin commercial aftermarket services and international defense contracts, coupled with productivity improvements from the company's CORE operating system.
INVESTMENT THESIS
Evidence suggests yes. A record $271 billion backlog is growing faster than revenue, fueled by parallel demand cycles in defense and commercial aerospace, providing a multi-year growth runway.
- Total backlog reached a record $271 billion, up 25% year-over-year.
- The book-to-bill ratio was 1.14 in the first quarter of 2026.
- Full-year adjusted sales guidance was raised to a range of $92.5 billion.
- Munitions deliveries at the Raytheon segment were up over 40% year-over-year in Q1 2026.
- Commercial aftermarket sales grew 14% in the first quarter of 2026.
PRIMARY RISK
A manufacturing flaw in Pratt & Whitney's GTF engines requires accelerated fleet inspections, creating a direct operational drag. This has a guided 2026 cash impact of approximately $0.7 billion and creates a significant profitability gap, with RTX's 10.9% operating margin lagging competitor GE Aerospace's 18.7%.
- The powder metal issue has a full-year 2026 estimated cash impact of approximately $0.7 billion.
- The issue has resulted in increased engine removals, shop visits, and aircraft on ground levels.
- RTX's trailing-twelve-month operating margin is 10.9%.
- Competitor GE Aerospace's trailing-twelve-month operating margin is 18.7%.
| KPI | Status | Rationale |
|---|---|---|
| Backlog | $271 billion for Q1 2026 - Accelerating | The backlog reached a new record high in the latest quarter, with its year-over-year growth rate accelerating. This growth is fueled by strong demand and significant new awards in both the commercial and defense sectors. |
| Book-to-Bill Ratio | 1.14 for Q1 2026 - Stable | The book-to-bill ratio remains healthily above the replacement level, indicating continued backlog growth. While the metric fluctuates quarterly based on the timing of large contract awards, the Raytheon segment's rolling 12-month book-to-bill of 1.48 highlights sustained strong demand. |
| PW1100 MRO Output Growth (YoY) | 23% (Q1 2026) | Measures the year-over-year increase in maintenance, repair, and overhaul output for the PW1100 GTF engine. This is a key indicator of the company's progress in resolving the powder metal issue and reducing aircraft on ground (AOG) levels. |
Backlog Strength vs. P&W Execution
BULL VIEW
Bulls focus on the record $271 billion backlog and 1.14 book-to-bill ratio, seeing the P&W issue as a manageable, temporary drag on a powerful, long-cycle growth story driven by defense and commercial supercycles.
CORE TENSION
Can the 25% YoY growth in the backlog offset the drag from the P&W engine issue, which the market punished with an -8.0% post-earnings stock decline?
PREVAILING SENTIMENT
The bull case is strengthening. Leading indicators for the P&W fix are positive, with grounded aircraft down 15% and MRO output up 23% year-over-year.
BEAR VIEW
Bears see the -8.0% stock drop after a guidance raise as proof that the P&W engine issue and supply chain risks could derail backlog conversion, making the 10.9% operating margin structurally impaired.
| Timeline | Event & Metric To Watch |
|---|---|
by August 29, 2026 | Compliance Scrutiny Resurfaces Watch: News flow or company disclosures related to the payment or the underlying ITAR consent agreement. |
by August 29, 2026 | Trade Compliance Settlement Payment Watch: A $33 million payment is due as part of a trade compliance settlement with the Department of State. |
10/19/2026 | Negative Earnings Reaction Watch: Decelerating growth, margin pressure, or negative updates on the Powder Metal Matter cash impact. |
10/19/2026 | Peer Supply Chain Warnings Watch: Peers reporting component shortages, labor constraints, or cost inflation impacting production rates or margins. |
10/19/2026 | Quarterly Earnings Report Watch: RTX is scheduled to report its next quarterly earnings. |
10/22/2026 | Peer General Dynamics Earnings Watch: Peer General Dynamics (GD) is scheduled to report earnings. |
10/27/2026 | Peer Boeing Earnings Watch: Peer Boeing (BA) is scheduled to report earnings. |
later this year | GTF Advantage Launch Delay Watch: Company announcements regarding the GTF Advantage program schedule, particularly during the Q3 earnings call. |
| Date | Event | Stock Impact |
|---|---|---|
2026-07-15 | Next Gen Interceptor Milestone Details: Raytheon successfully demonstrated its Next Generation Short Range Interceptor (NGSRI), proving the range, accuracy, and lethality of the new surface-to-air missile designed to replace Stinger. | +0.5% $193.39 -> $194.36 |
2026-06-09 | Malaysia MRO Footprint Quadrupled Details: Collins Aerospace expanded its MRO facility in Subang, Malaysia, with a investment that quadruples its footprint to meet growing regional demand. | -0.7% $178.66 -> $177.41 |
2026-05-06 | Major SharpSight Radar Order Details: Raytheon received a contract from Blue Raven to produce 120 SharpSight radars, the largest single order to date for the new multi-domain surveillance system. | +2.3% $172.15 -> $176.05 |
2026-04-21 | Q1 Earnings and Guidance Raise Details: Reported Q1 adjusted sales up 10% organically and raised full-year guidance for adjusted sales and EPS. However, the stock reacted negatively, falling -8.0% over two days. | -7.6% $194.98 -> $180.16 |
2026-03-13 | Alabama Missile Facility Expansion Details: Raytheon completed a $115 million expansion of its Redstone Missile Integration Facility, increasing the site's capacity by more than 50%. | +1.5% $202.20 -> $205.21 |
2026-02-03 | Singapore Aerospace Hub Investment Details: RTX announced plans to invest $139 million in Singapore through agreements with Collins Aerospace and Pratt & Whitney to reinforce its Asia Pacific aerospace hub. | -2.2% $199.59 -> $195.28 |
2026-01-28 | Raytheon LTAMDS Supplier Contract Details: Raytheon awarded TTM Technologies a multi-year contract for Lower Tier Air and Missile Defense Sensor (LTAMDS) radar components with a potential value of $200 million. | -0.7% $199.78 -> $198.39 |
Position Sizing
5% - 7%
NORMAL POSITION
Sizing is volatility-based: RTX trades at roughly 27% annualized options-implied volatility versus about 15% for the S&P 500 (1.9x the market), around the 71st percentile of its own trailing year. A 5% - 7% position keeps a single-name swing of that size within a diversified portfolio's risk budget.
Diversification Alternatives
LMT - Lockheed Martin
Focused Defense ExposureLockheed Martin offers more concentrated exposure to the defense upcycle, particularly in high-demand interceptors like PAC-3, without the operational overhang from a major commercial aerospace engine program.
GE - GE Aerospace
Higher-Margin Commercial AeroGE Aerospace provides exposure to the commercial aftermarket recovery with vastly superior profitability, evidenced by its 18.7% operating margin compared to RTX's 10.9%, and without a comparable product quality issue.
A premier aerospace and defense industrial with a massive, multi-year backlog, capitalizing on parallel supercycles in commercial aftermarket recovery and global defense restocking.
RTX's business is a powerful combination of long-cycle commercial aerospace equipment and services (Collins, Pratt & Whitney) and a high-demand defense portfolio (Raytheon). The company benefits from a large installed base that generates recurring, high-margin aftermarket revenue. Currently, it is navigating strong demand across all end markets, but faces operational execution challenges related to its supply chain and a significant fleet issue with its Pratt & Whitney GTF engines.
Sustained high book-to-bill ratios, increases in defense budgets, finalization of munitions framework agreements, and continued reduction in GTF engine aircraft-on-ground (AOG) levels.
A sharp downturn in global air travel, significant cuts to U.S. or allied defense spending, or a material worsening of the GTF powder metal issue requiring greater-than-expected financial charges.
Single-quarter fluctuations in segment mix, timing of specific contract awards within a given period.
Repricing Catalyst
Successful execution of the munitions production ramp-up through new framework agreements with the Department of War, and continued, measurable progress in reducing the number of aircraft grounded due to the GTF engine issue.
Collins Aerospace
$30.2B TTM (34% of Total) · 16% MarginWhat It Is
Sells technologically advanced aerospace and defense products and aftermarket services to aircraft manufacturers, airlines, and governments. Products include avionics, nacelle systems, landing systems, and complete cabin interiors.
Who Pays & How
Aircraft manufacturers like Boeing and Airbus (combined 16% of 2025 segment sales) and commercial airlines pay for original equipment and aftermarket services to build and maintain their aircraft fleets. Governments also procure defense-related systems and services.
Competition
Pratt & Whitney
$32.9B TTM (37% of Total) · 8% MarginWhat It Is
Sells aircraft engines for commercial, military, and business jet customers. Also provides extensive aftermarket services including maintenance, repair, and overhaul (MRO) and fleet management.
Who Pays & How
Aircraft manufacturers like Airbus (29% of 2025 segment sales), airlines, and governments pay for engines to power new aircraft and for long-term service agreements to ensure fleet reliability and performance.
Competition
Raytheon
$28.0B TTM (32% of Total) · 12% MarginWhat It Is
Sells defensive and offensive systems to U.S. and foreign governments. Key products include the Patriot air and missile defense system, smart weapons like AMRAAM and Tomahawk, advanced radars like SPY-6, and space-based systems.
Who Pays & How
The U.S. Department of War and allied foreign governments pay for advanced, combat-proven defense systems to counter evolving geopolitical threats and maintain national security.
Competition
RTX — Investor Video Playlist
Industry Resources
| Industrials Resources |
| IndustryWeek |
| Manufacturing.net |
| Aviation Week |
| Aerospace & Defense Resources |
| Defense News |
| FlightGlobal |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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