The defense contractor's total backlog hit a record $340 billion
By Freddy Sebastian
RTX raised its full-year forecast for the third time this year as demand drove double-digit organic sales growth across its commercial-aerospace and defense segments amid ongoing global conflicts.
RTX said over $81 billion in new commercial and defense awards during the latest third quarter pushed the defense contractor's total backlog to a record $340 billion. This included $176 billion in commercial orders and $164 billion in defense, the company said.
"We remain focused on increasing output, optimizing our cost structure, and investing in new technologies to support our customers and drive continued growth," Chief Executive Chris Calio said.
In September, RTX's Raytheon unit received a contract valued at up to $20.7 billion from the Defense Department to accelerate production of its AMRAAM missiles. This past summer, the company signed an agreement with a group of North Atlantic Treaty Organization allies to build AMRAAM components in Europe as part of a push to boost production and replenish air-defense stockpiles.
The Wall Street Journal previously reported that RTX said it would continue to invest to reach its long-term target of producing more than 1,000 Tomahawk missiles annually. The company is on track to make more than 400 this year, the Journal said last month.
For the full year 2026, RTX now projects adjusted earnings between $7.65 and $7.75 a share, up from its previous estimate of $7.10 to $7.25. The company also raised its adjusted sales forecast to between $97 billion and $97.5 billion, compared with its prior forecast of $95 billion to $96 billion. The latest sales estimate reflects 10%-to-11% organic sales growth.
Analysts polled by FactSet expect RTX's adjusted earnings at $7.26 a share on sales of $96.3 billion for the year.
RTX also hiked its full-year free-cash-flow estimate to between $9 billion and $9.2 billion, up from its previous view of $8.5 billion to $8.75 billion. Analysts were forecasting $8.7 billion.
For the third quarter ended Sept. 30, RTX posted net income of $2.71 billion, or $1.89 a share, compared with $2.01 billion, or $1.41 a share, in the prior-year period. The latest quarter included 26 cents a share in acquisition-accounting adjustments and 11 cents a share in restructuring and other nonrecurring items.
Stripping those items out, RTX reported adjusted earnings of $2.26 a share in the latest period, handily beating analysts' estimates of $1.78 a share.
Sales rose 11% to $24.97 billion, and were up 12% on an organic basis. Analysts had modeled $24.11 billion in quarterly sales.
At its Raytheon unit, sales jumped 14% to $8.03 billion, helped by higher volume on naval programs as well as land and air defense systems, including Patriot, Standard Missile and Tomahawk.
Sales increased 10% to $9.23 billion within its Pratt & Whitney division, driven by a 21% surge in commercial aftermarket volume and a 2% gain in military sales, offset by a 5% drop in commercial original equipment. The segment's operating profit was dented by a $363 million pretax charge from a customer bankruptcy.
At its Collins Aerospace unit, sales climbed 10% to $8.38 billion, led by a 23% jump in commercial original equipment, a 9% increase in commercial aftermarket, and a 7% rise in defense sales.