RTX Corp has demonstrated exceptional operational improvements, and its $236 billion backlog provides multi-year revenue visibility: defense spending has grown due to increased global military modernization amid geopolitical tensions.
RTX Corp is well positioned to capitalize on this elevated defense spending thanks to its technological leadership spanning next-generation propulsion systems and critical defense technologies like radar systems, electronic warfare, and missile defense.
Meanwhile the stock trades at 26.2 times the company’s forward earnings forecast. This might seem high, but the company has strong growth prospects from its diversified revenue streams across commercial aerospace, defense, and aftermarket services.
RTX CORP. (New York symbol RTX; www.rtx.com) is a leading maker of aircraft equipment, including control systems, navigation equipment and cabin interiors. It also makes jet engines through its Pratt & Whitney division, as well as a variety of military equipment such as land and sea-based missile defence and radar systems.
RTX has three divisions: Collins Aerospace makes aircraft control systems, navigation equipment and cabin interiors; Pratt & Whitney makes jet engines; and Raytheon makes military equipment such as missile defence and radar systems.
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The U.S. government is the company’s single-biggest customer, accounting for about 40% of its revenue. Customers outside the U.S. supply roughly 43% of its revenue.
RTX’s Backlog is now a very solid $236 billion
RTX’s revenue in the second quarter of 2025 ended June 30, 2025, rose 9.4%, to $21.58 billion from $19.72 billion a year earlier. The company benefitted from stronger demand from airlines for new jet engines and spare parts. Sales of military equipment, particularly its Patriot missile systems, also improved.
The higher revenue helped lift earnings by 11.8%, to $2.12 billion from $1.90 billion; per-share earnings improved 10.6%, to $1.56 from $1.41, on more shares outstanding.
The ongoing conflicts in the Middle East and Ukraine continue to fuel demand for the company’s military equipment, particularly its Patriot, Stinger and Tomahawk missile systems.
RTX also stands to gain from NATO’s plan to increase military spending by member countries to 5% of their gross national product by 2035 from the current target of 2%.
These factors have helped lift RTX by 38% since the start of this year. In fact, it’s now hitting all-time highs.
RTX expects U.S. tariffs on steel and aluminum, as well as tariffs in other countries, could
cost it $850 million for all of 2025. In response, it has increases prices and improves its efficiency. As a result, the company’s earnings will probably rise 7% in 2025 to $6.11 a share, and the stock trades at a reasonable 26.2 times that forecast given its growth prospects.
With the June 2025 payment, RTX raised your quarterly dividend by 7.9%, to $0.68 a share from $0.63. The new annual rate of $2.72 yields 1.7%.
Recommendation in Wall Street Stock Forecaster: RTX Corp. (formerly Raytheon Technologies Corp.) is a buy.
