RTX Corp. Soars on Earnings Beat and Massive Missile Deal
The aerospace and defense giant RTX Corp. is starting the year with significant tailwinds, delivering an impressive beat on its latest financial results that has analysts buzzing and the stock climbing to new highs. Far from simply meeting expectations, the company’s recent performance suggests it’s not just cruising through the skies, but accelerating on two major engines: a massive new defense contract and a steady recovery in its commercial aerospace division.
RTX, formerly known as Raytheon Technologies, recently reported fourth quarter earnings that comfortably topped Wall Street consensus estimates. The company posted adjusted earnings per share of $1.55, exceeding the consensus of $1.47, while quarterly revenue hit $24.24 billion, a noticeable jump of 12.1% compared to the same period a year prior. This strong finish to 2025 has given management the confidence to issue robust guidance for the new fiscal year, projecting an adjusted EPS range of $6.60 to $6.80.
The Defense Industrial Surge
The core driver of the bullish sentiment is a landmark agreement signed by the Raytheon segment with the U.S. Department of Defense. This includes five multiyear framework contracts designed to significantly expand and accelerate the production of key missile systems. Specifically, the deal aims to ramp up output for critical munitions such as the Tomahawk cruise missile, AMRAAM air-to-air missile, and various Standard Missiles.
This is far more than a typical contract; it represents a major push by the Pentagon to replenish global stockpiles and enhance the defense industrial base. One research firm, Wolfe Research, maintained an “Outperform” rating on the stock, estimating the capacity expansion could generate between $7 billion and $8 billion in incremental revenue for the Raytheon segment alone. This kind of long-term revenue visibility, stretching up to seven years, is music to investors’ ears and has fueled the stock’s rally, which saw it gain approximately 30% over the last six months.
Commercial Aerospace: Managing the Headwind
On the commercial side of the business, RTX’s Pratt & Whitney division continues to manage the long shadow cast by the highly publicized geared turbofan (GTF) engine inspection and maintenance program. This issue requires thousands of GTF-powered jets to undergo inspections and part replacements due to a manufacturing defect.
However, there are clear signs of progress. CEO Chris Calio noted that the number of grounded aircraft due to the recall is now down 20% from its 2025 peak, thanks to an improving maintenance, repair, and overhaul (MRO) output. Adding to the positive news, Pratt & Whitney recently secured a key order from Vietjet Air to power 44 additional Airbus A320neo family aircraft, complete with a 12-year maintenance service agreement, signaling continued customer confidence in the technology’s long-term value. Furthermore, the company is committing over $139 million to expand its MRO and manufacturing capabilities in Singapore, reinforcing its commitment to the Asia-Pacific market and supporting the GTF fleet.
With its defense business firing on all cylinders and the GTF recovery making measurable strides, RTX appears well positioned for continued success as one of the world’s largest aerospace and defense companies.