The Senate Armed Services Committee recently approved a Fiscal Year 2025 defense authorization bill calling for $886 billion in total defense spending, a 4.5% increase over the prior year. This boost is expected to flow through to key RTX programs, including the F-35 propulsion system and Patriot missile interceptors, enhancing multi-year contract visibility and underpinning a projected $92 billion order backlog over the next five years.

RTX’s reported backlog of $92 billion reflects an 8% year-over-year expansion, driven by new awards for next-generation fighter engines and advanced sensor suites. Notably, the company secured a five-year follow-on deal worth $7.3 billion for Aegis radar upgrades, ensuring revenue coverage on core defense platforms through 2030.

Following the budget authorization vote, a survey of 12 Wall Street firms shows an average 2025 earnings-per-share estimate revision of +8%, with three investment banks raising their ratings to Overweight. Forecast models now incorporate a compound annual revenue growth rate of 6% over the next three years, driven primarily by defense segment expansion and margin improvements from recent cost-reduction initiatives.