RTX Corporation secures $1.03B U.S. Army LTAMDS radar contract

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RTX secured a $1.03 billion contract with the U.S. Army to deliver its LTAMDS radar system, reinforcing its role in advanced air and missile defense capabilities. The award strengthens long-term revenue visibility and underscores RTX’s strategic importance in the defense technology market.

1. Six-Month Rally Driven by Defense and Commercial Momentum

Over the past six months RTX shares have risen 30.2%, outperforming the aerospace and defense sector. This gain reflects a series of major contract awards and expanded airline orders. Analysts have lifted their 2026 earnings estimates by an average of 7%, forecasting adjusted EPS of $7.25, up from $6.78 at the start of the period. Revenue guidance for 2026 remains above $92 billion, supported by a robust $85 billion backlog in defense programs and a growing aftermarket services segment that accounted for 42% of 2025 sales.

2. Landmark Defense Framework Agreements Expand Munition Output

Raytheon, an RTX business, secured five framework agreements with the U.S. Department of War to boost annual production of critical precision munitions. Under up-to-seven-year deals, Tomahawk cruise missile output will exceed 1,000 units, AMRAAM air-to-air missile builds will reach at least 1,900 per year, and SM-6 production will top 500. Production rates for SM-3 Block IB and Block IIA interceptors are set to accelerate by two to four times, strengthening the defense industrial base and preserving free cash flow through a collaborative funding model.

3. Commercial Aviation Wins and Service Extensions Enhance Aftermarket Revenue

RTX’s Commercial Engines and Collins Aerospace divisions landed multiple agreements at the Singapore Air Show. Pratt & Whitney inked a 12-year maintenance deal covering 44 additional GTF-powered A320neo family jets for Vietjet, bringing the airline’s GTF backlog to 137 aircraft. Pratt & Whitney Canada signed a 15-year APS5000 APU maintenance contract with Scoot, covering 24 units on 787 Dreamliners. Collins Aerospace extended FlightSense™ support with Singapore Airlines for 27 Boeing 777 and 777F aircraft over five years and renewed two contracts with All Nippon Airways for engine accessories and power-and-controls MRO services. These aftermarket agreements are expected to contribute over $1.1 billion in revenue through 2031.

Sources

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