RTX's Raytheon Unit Set to See Sales Boost With Major Defense Contracts

RTX Corporation (RTX), a prominent defense contractor, plays a key role in a wide array of defense operations, with its Raytheon business segment offering a variety of weapons, including air, sea and land-based missiles, interceptors, command and control mission solutions, radars, cyber solutions and a few more.Thanks to RTX’s experience of delivering cutting-edge products to the defense market, its Raytheon unit enjoys a solid inflow of contracts for its combat-proven products like AIM-9X, AMRAAM and Standard Missile-6 (SM-6) as well as Global Patriot Solutions. This, in turn, bolsters this unit’s revenue growth. The Raytheon unit reported a year-over-year increase of 1.4% in sales in 2024 and 4.7% in 2023. The unit’s recently secured multi-million-dollar defense contracts should continue to boost its top-line performance in the days ahead. In June 2025, RTX won a $1.10 billion contract modification for the production and delivery of AIM-9X Lot 25 missiles. In the same month, RTX was awarded a $250 million contract from Japan's Mitsubishi Electric Corporation (“MELCO”) for ESSM Block 2 licensed production. Earlier, in May, RTX secured a $1 billion contract to supply up to 55 Standard Missile-3 (SM-3) missiles.Other Defense Contractors Riding on Solid Contract FlowsAs nations worldwide race to modernize their defense systems, prominent U.S.-based defense contractors like Northrop Grumman (NOC) and Lockheed Martin Corporation (LMT) are also securing more and more contracts for their combat-proven products, thereby ensuring a steady revenue stream for themselves. In June, the Swedish Defence Materiel Administration selected Lockheed Martin’s TPY-4 next-generation ground-based air surveillance radar to enhance the country’s long-range surveillance capabilities, making Sweden the third nation to adopt this advanced fifth-generation radar system. Additionally, the company was awarded a $250 million contract to produce the F-35 logistics information system, which includes the Autonomic Logistics Information System and Operational Data Integrated Network and Mission Planning Environment hardware.On the other hand, Northrop clinched a $267.2 million contract in March to manufacture and deliver two MQ-4C Triton unmanned air systems and provide the U.S. Navy with a main operating base, along with associated support, related technical and administrative data services. The company clinched a $481.3 million contract in January for providing updates and improvements to the Integrated Air and Missile Defense Battle Command System's software.The Zacks Rundown for RTXShares of RTX have gained 45.3% in the past year compared with the industry’s 19% growth.Image Source: Zacks Investment ResearchThe company shares are trading at a discount on a relative basis, with its forward 12-month Price/Earnings being 22.95X compared with its industry’s average of 26.70X.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for RTX’s 2025 and 2026 earnings has moved south over the past 60 days. The same for the second and the quarters of 2025 has also gone south.Image Source: Zacks Investment ResearchRTX stock currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks