RTX Corporation

RTX Corporation is an American aerospace and defense company that designs, manufactures, and services aircraft engines, avionics, aerostructures, and missile-defense systems for commercial and government customers worldwide, generating $88.6 billion in GAAP revenue in fiscal 2025. Formed in 2020 through the merger of United Technologies Corporation's aerospace businesses — Collins Aerospace and Pratt & Whitney — with the Raytheon Company, RTX is the largest pure-play aerospace and defense firm by revenue globally, with a record $289 billion backlog spanning commercial aviation aftermarket contracts that run decades and defense orders that are still accelerating.

This is a company being reshaped by forces on two fronts. On defense, the post-2022 surge in munitions demand has collided with a U.S. administration intent on rebuilding industrial capacity at speed — five framework agreements signed with the Department of War, a $1.1 trillion base defense budget request for FY2027, and NATO allies marching toward 3.5% of GDP all point to a demand environment without modern precedent. On the commercial side, Pratt & Whitney's GTF engine fleet is simultaneously the company's largest liability and its most powerful latent earnings stream: the powder-metal manufacturing defect that grounded hundreds of A320neo aircraft is being resolved at pace, and the aftermarket revenue that flows once those engines are reliably in service is measured in decades. RTX's file turns on a single question: whether management can execute on both — converting the defense demand signal into contracts and output, while nursing the GTF fleet through its final years of elevated disruption and into the aftermarket harvest that lies beyond.

The market has priced in a fair amount of the good news. At roughly $209 per share, RTX trades at about 36.9 times trailing earnings and 21 times trailing EBITDA. Those are premium multiples for an aerospace company, and they imply the market sees the defense cycle extending and the GTF aftermarket arriving on schedule. Whether that premium holds depends on execution variables that are, at this stage, genuinely uncertain.