RTX’s diverse portfolio reduces risk while allowing it to capitalize on growth in multiple aerospace and defense submarkets.
With its focus on operational excellence and strategic positioning in growing aerospace and defense markets, the company demonstrates a clear path to sustained growth and shareholder returns. Notably, the company has a strategy to help it weather the Trump administration’s tariffs.
The stock trades at 21.2 times the company’s forward earnings forecast.
RTX CORP. (New York symbol RTX; www.rtx.com) is a leading maker of commercial aircraft equipment, electronic systems for military aircraft, and guided missiles.
The company took its current form in 2020 through the merger of United Technologies
and Raytheon. As part of the merger, the new firm also spun off its Otis (elevator) and Carrier (heating and air conditioning equipment) businesses as separate firms.
RTX has three divisions: Collins Aerospace makes aircraft control systems, navigation equipment and cabin interiors (34% of revenue in the latest quarter, 47% of earnings); Pratt & Whitney makes jet engines (35%, 25%); and Raytheon makes a variety of military equipment such as land and sea-based missile defence and radar systems (31%, 28%).
The U.S. government is the company’s biggest customer, accounting for about 45% of its revenue. Customers outside the U.S. supply roughly 43% of its revenue.
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RTX’s revenue in the first quarter of 2025 rose 5.2%, to $20.31 billion from $19.31 billion a year earlier. If you factor out businesses that the company bought and sold, as well as currency rates, revenue rose 8% in the quarter. The higher revenues are mainly due to stronger demand from airlines for spare parts. Sales of military equipment also improved.
The higher revenue also helped lift earnings by 11.2%, to $1.99 billion from $1.79 billion; per-share earnings improved 9.7%, to $1.47 from $1.34, on more shares outstanding.
Growth Stocks: Outlook remains positive for RTX
The stock has gained 11% since the start of 2025, and it hit a new all-time high of $136.17 on March 26, 2025. That’s largely because the U.S. and its NATO partners in Europe plan to increase military spending. The company is also seeing strong demand from commercial aircraft makers.
RTX expects U.S. tariffs on steel and aluminum, as well as tariffs in other countries, could cost it $850 million in 2025. In response, it will increase prices and improve its efficiency.
The company’s earnings are forecast at $6.11 a share in 2025, and the stock trades at a reasonable 21.2 times that estimate given its growth prospects. The $2.52 dividend yields 2.1%.
Recommendation in Wall Street Stock Forecaster: RTX Corp. is a buy.
