Aerospace & Defence
Leading aerospace and defence company formed from the merger of Raytheon and United Technologies.
View forensic reportFree cash flow jumped from $4.5 billion in 2024 to $7.9 billion in 2025, a 75% lift, while RTX trades at a forward P/E of 29.2x anchored on GTF headlines that should have cleared from the narrative six months ago. The repricing is overdue.
A $200B defence backlog, fading Pratt & Whitney charges, NATO spending tailwinds, and $36-40B in planned capital returns. The normalised PE is just 22-24x.
The ceasefire removes the Hormuz tail risk, but RTX's order backlog hit a record $217 billion. Defence spending is structural, not cyclical — and the market briefly forgot that.
Iran's ceasefire rejection accelerates an already powerful rearmament cycle. With a $200 billion backlog and 25% revenue growth over four years, RTX is positioned for sustained expansion.