RTX Corporation is an aerospace and defense company serving commercial, military, and government customers worldwide through three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. Collins Aerospace supplies aerospace and defense products and aftermarket services, including power generation and management, environmental and flight control, engine nacelles and components, cabin interiors, connected aviation solutions, and training and simulation systems. Pratt & Whitney supplies aircraft engines and auxiliary power units, along with fleet management and aftermarket maintenance, repair, and overhaul services. Raytheon provides threat detection, tracking, and mitigation capabilities, including sensors, mission orchestration, satellite control products, and software. The company was formerly known as Raytheon Technologies Corporation and changed its name to RTX Corporation in July 2023. It was incorporated in 1934 and is headquartered in Arlington, Virginia.
State Department Approves $24.3B F-35 Sale to Saudi Arabia
The State Department has approved a potential $24.3B sale of F-35 Lightning II stealth fighter jets built by Lockheed Martin to Saudi Arabia. Saudi Arabia requested 48 F-35 Lightning II Joint Strike Fighter aircraft, 49 Pratt & Whitney F135-PW-100 engines and other equipment. The proposed sale, which would require congressional approval, will strengthen Saudi Arabia's homeland defense and improve interoperability with U.S., regional and NATO forces, the State Department said, adding that it will not alter the military balance in the region or adversely impact U.S. defense readiness. The Saudi embassy in Washington said the proposed F-35 sale reflects the strength and enduring nature of the Saudi-U.S. strategic partnership and the continued advancement of defense cooperation. The approval follows other U.S. arms deals cleared with Saudi Arabia this year, including a $5B sale of bombs and guidance kits and a $1.96B sale of Advanced Precision Kill Weapon Systems.
RTX's Pratt & Whitney Invests $25 Million to Expand Poland Engine Parts Plant
RTX Corporation announced on September 4 that its Pratt & Whitney business is investing $25 million to expand its manufacturing facility in Niepołomice, Poland, a site that produces complex tubular assemblies for both military and commercial engines. The expanded facility will begin operations in 2028 and create over 120 jobs, adding to a site that already delivers precision components for engines including the F135, the Pratt & Whitney GTF, and the PW800. The move complements the $100 million investment announced in April to boost production and enhance capabilities at the company's facility in Rzeszów, Poland, and is backed by the Polish government under the Polish Investment Zone Programme, which provides certain tax exemptions. RTX ended the second quarter with a record backlog of $289 billion, up 22% year-over-year, and Poland is already the company's largest presence outside the United States with more than 9,500 employees. As of the close on September 11, RTX carried a forward P/E ratio of 27.29, above the sector median of 19.59 and that of peers including LMT, GD, and NOC.
RTX Says NASAMS Air Defense Combat-Ready for Australian Army
RTX said Wednesday that its Raytheon Australia business has completed delivery and preparation of a new air defense system for the Australian Army, declaring the National Advanced Surface-to-Air Missile System, known as NASAMS, combat-ready. The milestone marks the end of a multiyear development and integration project, with equipment delivered, connected and tested and Australian soldiers trained to operate it. Australia's version pairs locally designed radars from CEA Technologies with a Fire Distribution Centre from Norway's Kongsberg, and Raytheon's mobile launcher is mounted on the Australian-built Hawkei protected vehicle. The system can fire several Raytheon missiles, including the standard AMRAAM, the longer-range AMRAAM-ER and the AIM-9X, and is described as a short-range air defense system protecting a limited geographic area. RTX said combat use of NASAMS has contributed to international demand and that it is investing to increase production, though it disclosed no new order value, revenue forecast or additional Australian procurement tied to the announcement and did not specify how much capacity it plans to add or when it will be available.
RTX Corporation is expanding its defense communications capabilities through its subsidiary Collins Aerospace, which in 2025 was awarded a contract to deliver satellite communication systems supporting survivable communications across multiple frequency bands. Collins Aerospace also secured a role as the primary subcontractor for a U.S. Navy solution involving the engineering design and manufacturing of a Very Low Frequency communication subsystem, along with mission command, control and communications infrastructure, and is additionally supporting Advanced Extremely High Frequency and voice communications. The Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 14.79% and 7.60%, respectively. RTX is trading at a premium relative to the industry, with a forward 12-month price-to-sales of 2.62X compared with the industry average of 2.28X, and over the past year RTX shares have rallied 23.5% against the industry's 11.3% decline. RTX currently has a Zacks Rank #2 (Buy).
RTX Names Jill Albertelli President of Pratt & Whitney as Shane Eddy Retires
RTX appointed Jill Albertelli as president of its Pratt & Whitney business, effective January 1. Albertelli will report to RTX Chairman and CEO Chris Calio and succeeds Shane Eddy, who plans to retire after more than 40 years with the company. Eddy will remain through March 2027 as a special adviser to assist with the transition. Albertelli most recently led Pratt & Whitney's Military Engines division, where the company retained its position as the sole-source propulsion provider for the F-35 fighter jet, improved delivery and quality performance for the F135 engine and expanded its military-engine maintenance capacity. Eddy became president in 2022 and oversaw Pratt & Whitney's continuing transformation, including production and maintenance expansion for its Geared Turbofan and F135 engine programs.
Pentagon Inks Missile Production Deals With Boeing and RTX
The Pentagon announced framework agreements with The Boeing Company and RTX Corporation on August 14 to increase component production for the SM-3 Block IIA and SM-3 Block IB interceptors, part of a group of ship-fired, surface-to-air interceptors underpinning the Aegis Ballistic Missile Defense System. The announcement had little impact on the shares, with Boeing down around 0.4% and RTX down about 1% during the day. The move is part of a broader buildup: RTX alone inked five separate Pentagon deals earlier this year to boost output of Tomahawk cruise missiles, AMRAAM air-to-air missiles, and the Standard Missile family, with Tomahawk production expected to increase sixteenfold, from approximately 60 to 1,000 units per year. Congress has backed the effort, with the 2026 defense spending bill providing multiyear procurement authority for eight critical munitions and more than $6.3 billion for 13 critical munitions, while the Pentagon's fiscal 2027 budget request calls for roughly $95 billion in missile procurement. RTX's backlog reached a record $289 billion by the second quarter of 2026, and Boeing is a key contractor supporting Aegis-related and other interceptor programs, though hedge fund ownership fell for both companies between the first and second quarters, from 99 to 90 funds for Boeing and from 95 to 92 for RTX.
RTX Projects Growth on $289B Backlog as Empire State Manufacturing Cools
RTX Chairman and CEO Chris Calio told Morgan Stanley's annual Laguna Conference that the aerospace and defense company holds a backlog of approximately $289 billion, excluding five major munitions framework agreements and a recently awarded seven-year, $23 billion Tomahawk contract. Calio projected medium-term operating margins of 19%-20% for Collins Aerospace and 2026 free cash flow of about $8.6 billion, noting that about 48% of Raytheon's backlog is international, up four percentage points from a year earlier. Separately, the New York Fed's Empire State Manufacturing Index fell to 7.6 in September from 20.6 in August, missing the 14.1 consensus, with new orders slowing sharply to 2.0 from 17.3 and shipments turning negative at -3.2. U.S. Treasury Secretary Scott Bessent told the House Financial Services Committee that the federal deficit-to-GDP ratio declined to 5.7%-5.8% for fiscal year 2026, down from approximately 6.3% inherited from the prior administration. The U.S. FDA also announced the Expedited IND Pilot Program under HHS' Operation TrialBlazer, accepting applications through Oct. 30 and expecting to select eight to 10 sponsor-institution pairs.
RTX CEO Calio Sees Defense and Aerospace Demand Driving Cash-Flow Growth
RTX Chairman and Chief Executive Chris Calio said strong demand for air travel and rising global defense spending should support the aerospace and defense company's growth for years, speaking Tuesday with Morgan Stanley analyst Christine Liwag at the firm's 14th Annual Laguna Conference. Calio said RTX has a backlog of about $289 billion, a figure that does not include five framework agreements covering major munitions programs or a recently awarded seven-year, $23 billion Tomahawk contract, and that volumes under the five agreements could rise by two to four times. About 48% of Raytheon's backlog is international, up four percentage points from a year earlier, and sensors and effectors account for about 70% of the unit's sales, with the Coyote counter-drone system having recorded more than 600 drone defeats in operational settings. On the commercial side, RTX expects to deliver a record number of geared turbofan engines this year, and GTF maintenance output rose 40% from a year earlier in the second quarter, helping reduce aircraft-on-ground levels by 25% since the end of 2025. RTX continues to target a medium-term operating margin of 19% to 20% at Collins Aerospace and expects 2026 free cash flow of about $8.6 billion at the midpoint of its forecast, with Calio describing the dividend as sacrosanct.
Hermeus to Build Pratt & Whitney F100-PW-229 Engines Under New License
Pratt & Whitney, an RTX business, and Hermeus have signed a Production License Agreement authorizing Hermeus to manufacture F100-PW-229 engines, one of the U.S. military's most widely fielded fighter propulsion systems. The deal creates a new qualified production source for the F100 engine, expanding U.S. capacity to build combat-proven fighter engines. Hermeus will produce the engines using its rapid-build production model while adhering to Pratt & Whitney's global standards for quality, safety and site activation. The F100 has accumulated more than 32 million flight hours and has powered the U.S. Air Force's F-15 and F-16 fighter jets for more than five decades. The engine also powers Hermeus' Quarterhorse aircraft, which achieved supersonic flight earlier this year, making it the world's first privately developed unmanned supersonic jet. Jessica Villardi, vice president of Fighter & Mobility Programs at Pratt & Whitney, said the partnership expands U.S. production capacity to meet growing customer demand, while Hermeus CEO Zach Shore said the company becomes the first vertically integrated airframer with the in-house propulsion capability required to scale Quarterhorse.
BofA Warns Bombardier U.S. Sales Ban Would Hit Largest Market
A potential ban on Bombardier aircraft sales in the United States could hit the Canadian jet maker's largest market and disrupt an aerospace supply chain spanning thousands of U.S. companies, BofA analysts said. The issue follows President Donald Trump's statement that Bombardier should no longer sell aircraft in the U.S., where its jets are certified by the Federal Aviation Administration and most aerospace goods produced in Canada and Mexico are exempt from U.S. tariffs. The U.S. accounts for about 45% of the global business-jet market and is Bombardier's largest individual market, with the company delivering roughly 80 to 100 aircraft there annually out of total deliveries of around 155, while its 2026 guidance calls for more than 157 aircraft. A halt to U.S. sales could also affect American suppliers, as Bombardier's supply chain includes roughly 2,800 U.S. companies across 47 states and generates about $2.5 billion in annual U.S. purchases. GE Aerospace supplies engines for Bombardier's Global 7500 and 8000 aircraft, Honeywell powers the Challenger 300, 350 and 3500 family, and RTX's Collins Aerospace supplies avionics across the Global and Challenger ranges. Trade tensions could also affect U.S. defense contractors if Canada shifts future procurement toward European or Asian suppliers, with programs potentially exposed including Canada's planned purchase of 88 Lockheed Martin F-35A fighters, which carries an acquisition budget of about C$27.7 billion, of which only 16 are firmly ordered and Ottawa has considered Saab's Gripen as a possible partial alternative. Canada also has commitments involving Boeing's P-8A Poseidon and General Atomics' MQ-9B SkyGuardian drones, and while a complete cancellation of Canada's outstanding U.S. defense contracts is considered unrealistic, future purchases could gradually shift toward other suppliers if trade relations deteriorate.
RTX Expands GTF Aftermarket Network to 21 Facilities as PW1100G-JM Output Jumps 26%
RTX Corporation is expanding its commercial aerospace aftermarket opportunity as Pratt & Whitney increases support capabilities for its Geared Turbofan engine family, with the GTF aftermarket network reaching 21 facilities worldwide in 2025 and PW1100G-JM shop-visit output rising approximately 26% year over year. The GTF family powers more than 2,600 aircraft operated by more than 90 operators across the Airbus A320neo family, Airbus A220 and Embraer E-Jets E2 platforms, creating recurring maintenance, repair and overhaul demand. In 2025, the GTF Advantage engine received certification for the Airbus A320neo family, designed to deliver higher takeoff thrust while reducing fuel consumption versus the current GTF engine. Pratt & Whitney generated $32.9 billion in sales in 2025, up from $28.1 billion a year earlier, while operating profit increased to $2.6 billion from $2 billion. The Zacks Consensus Estimate points to RTX earnings per share growth of 14.79% in 2026 and 7.60% in 2027, and the stock carries a Zacks Rank #2 (Buy).
RTX Corporation, through its Collins Aerospace business, has secured a contract worth up to $472 million to provide engineering services for the modernization and sustainment of the U.S. Army's CH-47 Chinook fleet. The contract focuses on avionics upgrades to integrate new capabilities, address obsolete systems, and strengthen the Chinook's avionics architecture, supporting mission readiness and enabling more efficient technology incorporation. The award also promotes commonality across the Army's aviation fleet through open and reusable avionics architectures, which can be integrated across multiple aircraft to reduce complexity and improve cost and schedule efficiency. This contract underscores Collins Aerospace's long-standing relationship with the U.S. Army and positions RTX to benefit from sustained demand for advanced avionics and modernization services as the military extends the service lives of existing aircraft. RTX shares have surged 30.2% in the past year, and the company holds a Zacks Rank #2 (Buy).
Lockheed Martin's Javelin JV Signs Co-Production MOU With Tata Advanced Systems
Lockheed Martin's Javelin Joint Venture, a partnership with Raytheon, has signed a memorandum of understanding with Tata Advanced Systems Limited to explore co-production of the Javelin All Up Round missile system in India. The agreement, signed on August 30, follows JJV's selection of Tata as its prime partner for future in-country co-production, and calls for establishing a final assembly and integration facility in India along with local manufacturing of components. Lockheed's Troy, Alabama plant will continue producing sub-assembly kits under existing multiyear agreements, even as final assembly shifts overseas. With over 55,000 Javelin missiles and 12,000 Command Launch Units produced to date, the partnership aims to meet expanding global demand while deepening ties with Raytheon and Tata. However, the deal faces uncertainties from India's defense procurement landscape, technology transfer concerns, and competitive pressure from other suppliers or domestic missile programs.
Defense ETFs to Watch Amid Renewed US-Iran Tensions
Renewed US-Iran tensions, marked by US strikes on Iranian rocket launchers in the Strait of Hormuz and retaliatory attacks on US bases in Jordan, have created a compelling investment opportunity in the defense industry. Defense contractors like Lockheed Martin, RTX, and Northrop Grumman are poised to benefit from multi-billion-dollar procurement cycles, including Lockheed's $59 billion contract to triple Patriot missile production and RTX's $22.9 billion Navy contract for Tomahawk missiles. For diversified exposure, investors may consider defense ETFs such as the iShares U.S. Aerospace & Defense ETF (ITA), Invesco Aerospace & Defense ETF (PPA), and State Street SPDR S&P Aerospace & Defense ETF (XAR), each up 8.5% year to date and holding a Zacks ETF Rank #2 (Buy). Global defense spending is projected to reach $2.6 trillion by the end of 2026, supporting sustained demand for these funds.
RTX wins $240.75M Navy contract for F135 engine work
RTX announced Thursday it won a not-to-exceed $240.75 million contract modification from the U.S. Navy to support the F135 engine for the F-35 Joint Strike Fighter program. The modification covers engineering work to mature the engine, address operational issues, and improve readiness, as well as supporting the F135 engine core upgrade and long-lead hardware for a spare test engine. Work is expected to be completed by March 2028, with about $214.16 million in fiscal 2025 funds from the Air Force, Navy, and F-35 program partners obligated at award. Naval Air Systems Command is the contracting activity.
Raytheon completes $50 million Mississippi facility expansion
Raytheon, an RTX business, has completed a 17,000 square-foot expansion of its Forest, Mississippi manufacturing facility, supported by a $50 million capital investment. The project will boost production capacity for critical electronic warfare and radar systems and is expected to create 100 high-skill jobs by 2028. The Forest site now encompasses 445,000 square feet of manufacturing space, making it one of the largest defense plants in the state. Over the past decade, Raytheon has completed three expansions totaling $280 million in capital investment, including a 20,000 square-foot addition in 2013 and a 50,000 square-foot radar facility in 2020. The latest expansion will serve as a hub for production of Next Generation Jammer Mid-Band pods for the U.S. Navy and Australian government, as well as other airborne radar programs.
The U.S. military has awarded RTX Corporation's Raytheon business a $22.9 billion contract to accelerate Tomahawk missile production, a key part of replenishing depleted stockpiles. The seven-year deal will boost annual output to 1,000 missiles from 60, and it builds on a framework agreement signed in February. RTX ended Q2 with a record backlog of $289 billion, including $119 billion in defense, and raised its full-year sales guidance to $95–96 billion. However, the production ramp-up poses execution risks, and the stock trades at a premium valuation. Hedge funds increased their stakes in Q1, with Fisher Asset Management holding the largest position.
The projected cost of acquiring the Pentagon's F-35 fighter fleet has risen by about $51 billion since late 2023, bringing the total to approximately $536 billion, a 10% increase from $485 billion, according to a government report and the F-35 program office. The increase includes roughly $32 billion for aircraft and engine procurement and $19 billion for research and development, and reflects a shift by the Marine Corps from some F-35B jets to the more expensive carrier-based F-35C. As of late July, 872 of the 2,470 aircraft planned for the U.S. military had been delivered. The cost increase underscores the program's importance to Lockheed Martin, which builds the aircraft, and major suppliers including RTX's Pratt & Whitney and Northrop Grumman. Another $900 million was added after reassessing the Block 4 modernization package, which is years behind schedule. The $536 billion figure covers acquisition and is separate from an estimated $1.5 trillion in operating and support expenses, putting the F-35's total cost near $2 trillion over roughly 90 years.
RTX Unit Collins Aerospace Completes F-35 EPACS Altitude Testing
RTX unit Collins Aerospace has completed altitude testing of its Enhanced Power and Cooling System, or EPACS, for the F-35 aircraft. The testing validated EPACS performance in high altitude operating conditions relevant to real-world flight. EPACS is designed as a next-generation power and thermal management system to support ongoing technology upgrades across the F-35 program. RTX is a large US aerospace and defense company with a market value of about $282.9b, and Collins Aerospace sits within this broader group as a key supplier of advanced systems for programs such as the F-35.
Raytheon's AIM-424 Malice missile with 300-mile range begins testing
RTX Corp. subsidiary Raytheon has begun testing a new long-range air-to-air missile called the AIM-424 Malice, which has a range of nearly 300 miles. The missile can be carried by fighter jets such as the F-35 and F-22, according to Bloomberg. It debuted Saturday at the Tailhook Association's annual symposium in Reno, Nevada. The Navy did not say when the Malice would be deployed.
Rocket Lab Secures Record $266 Million Space Force Contract
Rocket Lab has secured a $266 million contract from the U.S. Space Force to provide around a dozen suborbital launches, with an option for more, marking the company's largest launch contract award ever. The first launch is expected by the end of 2026. Earlier this year, the Pentagon awarded Rocket Lab a $190 million contract to support hypersonic flight testing, and the company is working with RTX on the proposed Golden Dome missile defense initiative. Hedge fund sentiment was mixed in the first quarter, with the number of funds holding Rocket Lab shares dipping to 43 from 45, though Marshall Wace raised its stake by 1,213% to $120.8 million and Tudor Investment Corp opened a new position of about $27.3 million.
Polymarket's public ledger may be leaking military secrets
New research suggests Polymarket's public blockchain may be structurally built to leak military secrets, with 152 wallets winning $8 million on military and defense markets at a 97.2% win rate. The Anti-Corruption Data Collective analyzed every settled Polymarket market through May 5, 2026, and identified 556 'Orca' wallets that staked at least $2,500 on long-shot outcomes within a single hour. Within that group, 152 wallets concentrated on military and defense markets, collectively winning $8 million with an average win rate of 97.2%, far above the roughly 52% win rate across military markets broadly. The research also found that Orca bets often attract fast-following wagers from larger 'Whale' accounts and automated trading bots, amplifying the signal; for example, hours before Israel's June 2025 strikes on Iran, an Orca bet was followed by a bot wager of $200,000 and a whale wager of $100,000 on the same outcome. Master Sgt. Gannon Ken Van Dyke turned roughly $33,000 into more than $400,000 once the raid was confirmed, according to the Department of Justice, and his case became the public face of insider trading on prediction markets, though he was not among the 152 Orcas because he built his position more gradually. The House Oversight Committee opened a probe into Polymarket and Kalshi in May, and the CFTC has brought a civil complaint against Van Dyke, while Polymarket says it has referred dozens of suspicious wallets to authorities.
Motorola Solutions to Acquire D-Fend Solutions for $1.5 Billion
Motorola Solutions is acquiring counter-drone technology firm D-Fend Solutions in a deal valued at $1.5 billion. The acquisition adds D-Fend's counter-unmanned aerial systems capabilities, which can detect and safely take control of unauthorized drones and direct them to a designated landing area, to Motorola's public-safety portfolio. D-Fend's technology is deployed across airports, critical infrastructure, stadiums, military bases and borders in more than 30 countries, creating cross-selling opportunities for Motorola. The company faces competition from Axon Enterprise and RTX Corporation in the counter-drone space. Motorola stock has declined 2.4% over the past year, and its shares trade at 25.58 times forward earnings, below the wireless equipment industry's 31.44.
Raytheon Wins $22.9 Billion Tomahawk Production Contract
RTX subsidiary Raytheon has been awarded a seven-year, $22.9 billion contract to accelerate Tomahawk cruise missile production for the U.S. Navy and allies. Under the agreement, Raytheon plans to raise annual Tomahawk output to more than 1,000 missiles and provide associated support, having already delivered three times more Tomahawks in the first half of 2026 than in the same period of 2025. The company will invest in workforce, technology, supply chain, and facilities, working with hundreds of small and mid-sized U.S. suppliers to scale production. The multi-year award provides long-term visibility and could make the Tomahawk program an increasingly important contributor to Raytheon's defense growth.
RTX Wins $22.9 Billion Tomahawk Deal and Raises Guidance
RTX Corporation's Raytheon unit secured a US$22.90 billion, seven-year Tomahawk cruise missile contract with the U.S. Navy and reported Q2 2026 results that exceeded expectations alongside higher full-year guidance and continued dividend growth. The long-duration defense award and stronger-than-expected quarterly performance underline RTX's ability to convert its sizeable backlog into contracted, cash-generating programs. The new contract reinforces near-term earnings visibility, while the biggest ongoing risk remains the company's dependence on government budgets that could shift away from high-cost hardware. RTX's narrative projects $111.8 billion revenue and $10.9 billion earnings by 2029, with a fair value estimate of $232.27, a 5% upside to its current price.
Pentagon procurement surge to benefit major defense contractors
The Pentagon is pushing defense contractors to rapidly scale production of missile interceptors, munitions, and drones following significant inventory depletion, creating a broad procurement surge across the U.S. defense industrial base. Deputy Defense Secretary Steve Feinberg gave industry leaders 21 days to submit proposals for faster deliveries, while President Donald Trump has pressed contractors to direct more capital toward production capacity rather than buybacks and dividends. Within the roughly $1.5 trillion defense budget request, autonomous vehicles and drone defense at $122 billion and missiles and missile defense at $123.7 billion represent the two largest growth areas. Lockheed Martin and Northrop Grumman are the dominant large contractors with direct interceptor and drone program exposure, while Kratos Defense & Security Solutions and AeroVironment offer more focused drone and counter-drone exposure. Lockheed Martin posted $65 billion in new orders in its most recent quarter, pushing its backlog to a record $230.4 billion, and Boeing and RTX reached framework agreements with the Pentagon to boost production of SM-3 Block IIA and Block IB interceptor components.
Boeing Signs Seven-Year Frameworks to Expand SM-3 Output
Boeing signed seven-year framework agreements with the US Department of War and Raytheon, an RTX business, to increase production of avionics and ejector assemblies for the Standard Missile-3, the sea-based interceptor designed to hit missile threats outside the atmosphere. Boeing, the DoW and prime contractor Raytheon will ramp production ahead of contract while they negotiate a multi-year award under the frameworks, committing capacity before the money is locked in. The output rise covers hardware for the SM-3 Block IB and Block IIA variants. Bob Ciesla, vice president of Boeing Precision Engagement Systems, said the deal gives a clear demand signal to build and deliver SM-3 interceptors. No financial terms were disclosed. The arrangement follows a similar structure Boeing agreed with the DoW and Lockheed Martin to increase output of PAC-3 Missile Segment Enhancement seekers.
The Pentagon is pressing U.S. defense contractors to dramatically accelerate weapon production, with deputy defense secretary Steve Feinberg giving major contractors 21 days to submit plans for significantly faster delivery schedules. This directive follows critical munition shortages, with some key missile inventories depleted by over 65% after five months of war with Iran, and the Center for Strategic and International Studies estimates replenishment could take more than three years. The production push is expected to benefit defense majors like Lockheed Martin, RTX, Boeing, and General Dynamics, and investors may consider diversified defense ETFs such as iShares U.S. Aerospace & Defense ETF, Invesco Aerospace & Defense ETF, and State Street SPDR S&P Aerospace & Defense ETF to capture the upcoming rally.
Raytheon awarded $745 million contract for SM-3 IIA interceptors
Raytheon, an RTX business, has received a $745 million contract from the Missile Defense Agency for the production and sustainment of Standard Missile-3 Block IIA interceptors. The SM-3 IIA is a cooperatively developed program between Japanese industry and Raytheon, featuring a larger rocket motor and enhanced kinetic warhead to engage short- to intermediate-range ballistic missile threats. RTX has invested in expanding capacity, including a recent $115 million expansion of its Alabama missile integration facility that will increase integration and delivery capacity by over 50%. Production under this contract will be completed at Raytheon facilities in Tucson, Arizona, and Huntsville, Alabama.
Pentagon gives defense contractors 21 days to propose faster weapons production
The Pentagon is pressing U.S. defense contractors to sharply accelerate weapons production, giving industry leaders 21 days to submit proposals for faster deliveries and increased output of priority weapons. Deputy Defense Secretary Steve Feinberg issued the directive in a memo, and Pentagon spokesman Sean Parnell confirmed the initiative is part of a broader effort to rebuild the defense industrial base. The push comes amid concerns over supplies of advanced missile interceptors, with the Center for Strategic and International Studies estimating that the U.S. inventory of Patriot interceptors may have fallen by at least 65% since before the Iran conflict, to between 759 and 827 from about 2,330, while THAAD inventories stand between 234 and 278 interceptors, at least 38% below the prewar level of about 452. The Pentagon's demand could translate into additional orders and capacity investments for contractors, though the biggest constraint may be how quickly manufacturers can expand factories and increase output for sophisticated missile systems. The effort faces uncertainty in Congress, where a defense spending bill is stalled amid opposition to the military campaign against Iran and resistance to a White House proposal to increase Pentagon spending to $1.5 trillion from about $900 billion last year.
Pentagon asks Boeing, Lockheed, RTX to speed weapons output
The Pentagon has asked major U.S. defence contractors to accelerate production and delivery of critical weapons systems as the Iran war strains military stockpiles. Deputy Defence Secretary Steve Feinberg sent the request to companies including Boeing, Lockheed Martin and RTX in an August 5 letter, calling years-long development cycles unacceptable and demanding dramatically faster program schedules and expanded production capacity now. The Pentagon is seeking quicker procurement and higher output of wide-area surveillance equipment, air-defence sensors, missile interceptors and missile-tracking systems, while also identifying satellite communications, next-generation air-defence equipment and Lockheed Martin's Next Generation Interceptor as priority programmes. Defence companies were asked to submit plans by late August detailing more aggressive delivery schedules, expanded manufacturing capacity or both, as the Pentagon seeks $18.2 billion in additional war funding for missile interceptors.
Raytheon wins two U.S. defense contracts worth $1.28 billion
Raytheon has secured two U.S. defense contracts with a combined value of $1.28 billion for missile and weapons-system production. The Missile Defense Agency awarded a $745.4 million contract for Standard Missile-3 Block IIA missiles, with $553.3 million obligated at the time of award and work expected through February 2031. The U.S. Army also provided a $536.0 million contract modification for the TOW Weapon System, bringing that contract's total cumulative value to $750.8 million and extending through August 2027.
Trump denies missile shortages, says U.S. has 'massive amounts' of munitions
President Donald Trump has dismissed recent media reports of U.S. missile stockpiles diminishing due to the Iran war, posting on Truth Social that the U.S. has massive amounts of munitions, especially of certain types, and that large amounts are being manufactured and shipped as needed. He added that defense companies are building the largest number of plants and factories in the country's history and threatened that leakers of these treasonous statements are being hunted down with long-term jail sentences sought. The Washington Post reported that Trump clashed with Defense Secretary Pete Hegseth at Camp David last week over the reported munitions shortages, with Trump demanding answers and Hegseth blaming his deputy Stephen Feinberg, though White House press secretary Karoline Leavitt called the story 100% fake news. A source told The Post that the shortages, particularly in long-range guided missiles and air-defense interceptors, were part of the reason Trump called off additional strikes against Iran in recent days. The U.S. reportedly launched over 850 Tomahawk cruise missiles and more than 1,000 Patriot and Terminal High Altitude Area Defense systems in the first month of the Iran war, and used more than 1,300 tactical ballistic missiles in the initial weeks of fighting.
Pratt & Whitney, an RTX business, has been awarded a nearly $1.3 billion undefinitized contract for F135 engine spare parts. The Indefinite Delivery, Indefinite Quantity contract will fund fiscal year 2026 F135 initial spare parts requirements, deployable spare packages, depot lay-ins and associated support equipment for U.S. and international F-35 customers. The F135 powers all three variants of the F-35 Lightning II, and Pratt & Whitney has delivered more than 1,500 production engines to 20 allied nations. The contract aims to strengthen the global sustainment network, which supports 42 bases and 13 ships worldwide, and advance readiness for the F-35 fleet.
Pentagon seeks $18.2 billion for advanced missile replenishment
The Pentagon’s $67 billion emergency funding request for this fiscal year includes $18.2 billion to replace advanced missiles such as the Patriot, Navy Tomahawks, and the Army’s Thaad interceptor, according to documents provided to Congress. The breakdown includes $3.28 billion for three versions of the Navy’s RTX Corp. family of standard missile interceptors and $100 million to buy a classified Lockheed Martin air-to-air weapon called the Joint Advanced Tactical Missile, which has not yet been fielded. Separately, RTX unit Pratt and Whitney received a $1.3 billion modification to a U.S. Navy contract covering spares for the F135 propulsion system and the Joint Strike Fighter program.
RTX Reports Q2 Beat, Raises 2026 Outlook on Record $289 Billion Backlog
RTX Corporation reported second-quarter 2026 revenue of US$24.71 billion, up from US$21.58 billion a year earlier, with net income rising to US$2.14 billion from US$1.66 billion and basic earnings per share from continuing operations reaching US$1.58. The company also raised its full-year 2026 sales and profit guidance, supported by a 22% year-over-year increase in backlog to a record US$289 billion spanning commercial aftermarket and defense programs. While the enlarged order book reinforces near-term contract visibility, engine reliability issues and supply chain constraints remain key risks, particularly if Pratt & Whitney’s GTF-related maintenance bottlenecks lead to higher warranty costs or delivery disruptions. The backlog-driven catalyst strengthens RTX’s investment narrative, though execution risks tied to grounded fleets and capital-intensive operations persist.
Airbus hints at up to 890 aircraft deliveries for full-year target, second-quarter profit up 54%
European aerospace giant Airbus on the 29th gave a bullish outlook for its full-year 2026 aircraft delivery target, suggesting it could reach up to around 890 units, up from the previous target of about 870. Second-quarter results saw adjusted operating profit rise 54% year-on-year to 2.43 billion euros, with revenue up 28% to 20.53 billion euros, beating market expectations. CEO Guillaume Faury struck a conciliatory tone regarding relations with Pratt & Whitney, a unit of US-based RTX, with which Airbus had been at odds over engine supply delays, and said there would be no issues for 2026. Second-quarter aircraft deliveries hit a quarterly record of 237 units, helped by improvements in delays to China and engine supply problems. The full-year outlook was maintained, including existing targets such as adjusted operating profit of 7.5 billion euros.
Willis Lease Finance Corporation has signed a five-year agreement with RTX’s Pratt & Whitney to provide storage and lease return services for PW1100G-JM, PW1500G, PW1900G, PW4000 and IAE AG V2500 engines. The services will be performed from Willis Lease’s facilities in Coconut Creek, Florida and Bridgend, Wales, supporting Pratt & Whitney’s growing aftermarket storage requirements. The agreement builds on a decades-long relationship and was strengthened by quality reviews of Willis Engine Repair Center, a subsidiary of Willis Lease, as well as its technical capabilities and maintenance and storage training initiatives. Austin C. Willis, CEO of Willis Lease, said the deal reflects Pratt & Whitney’s confidence in the company’s team, facilities and technical capabilities.
RTX Raises 2026 Sales and Profit Outlook on Strong Aftermarket and Defense Demand
RTX Corporation lifted its 2026 sales and profit outlook, citing sustained demand for commercial aircraft maintenance and military systems. The company now projects adjusted sales of $95 billion to $96 billion, up from a prior range of $92.5 billion to $93.5 billion, and adjusted earnings per share of $7.10 to $7.25, up from $6.70 to $6.90. The revised forecast came during the second quarter earnings call, where RTX reported quarterly revenue of $24.7 billion, a 14% year-over-year increase, and adjusted earnings per share of $1.89, up 21%. The Pratt & Whitney unit saw a 16% sales rise to $8.89 billion, while the Raytheon defense business grew 18%, and Collins Aerospace posted an 8% increase. The company's total backlog expanded 22% to $289 billion, with $170 billion in commercial aerospace and $119 billion in defense orders.
Dow edges higher while Nvidia drop weighs on Nasdaq
The Dow Jones Industrial Average edged higher at midday on July 27, while the Nasdaq Composite slipped as a decline in Nvidia shares offset optimism from cooling geopolitical tensions. The Dow was up 0.13% to 52,017.19, the S&P 500 fell 0.33% to 7,387.76, and the Nasdaq dropped 0.44% to 24,840.43. RTX Corp climbed 2.61% to $218.28 on strong second-quarter earnings, and SAP surged 7.4% to $171.79, extending last week's gains after beating earnings expectations. Reddit rose 6.7% to $171.79 on optimism ahead of its upcoming earnings report. Oil prices fell sharply, with WTI crude down almost 7% to $83.15 a barrel, following news of a pause in strikes between the U.S. and Iran, which helped lift the Dow slightly. Investors are bracing for further volatility and will be watching the Federal Reserve meeting this week, where rates are widely expected to remain unchanged, though inflationary pressures could prompt a rate increase before year-end. Renewed artificial intelligence valuation concerns also weighed on markets ahead of earnings from Microsoft, Meta Platforms, Apple, and Amazon, with investors focused on capital expenditure plans.
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