RTX Corporation

RTX Corporation is an American aerospace and defense manufacturer that sells avionics, aircraft engines, missiles, and air-defense systems to governments, airlines, and airframers worldwide through three franchises: Collins Aerospace, Pratt & Whitney, and Raytheon. It booked $88.6 billion of net sales in fiscal 2025, employed roughly 180,000 people across 52 countries, and carried a record $268 billion order book into 2026.

This is the story of a turnaround that the market has already noticed. Three years ago RTX was the sum of two imperfectly integrated mergers and one self-inflicted quality crisis: a rare powder-metal condition in the PW1100 geared turbofan forced a $2.9 billion pre-tax charge in 2023, left hundreds of aircraft on the ground, and dragged consolidated operating margin down to 5.2%. Since then the company has grown organic sales, expanded margins, resolved a pile of legacy legal matters, and paid down debt. Operating margin reached 10.5% in 2025 and the order book has never been fuller.

The file turns on a single question: how much of the rearmament windfall is already in the price? RTX now trades at roughly 21 times trailing EBITDA and 35 times trailing earnings, multiples that assume the defense cycle persists and that Pratt & Whitney's aftermarket matures on schedule. The business is executing better than it has in a decade. Whether that execution is enough to justify the multiple is the debate that matters.