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

Core Insights - RTX Corporation, a leading defense contractor, is significantly involved in various defense operations through its Raytheon business segment, which provides a range of weapons systems including missiles and cyber solutions [1] Group 1: Company Performance - The Raytheon unit of RTX has experienced a year-over-year sales increase of 1.4% in 2024 and 4.7% in 2023, driven by strong demand for its combat-proven products [2][8] - RTX secured a $1.10 billion contract modification for AIM-9X Lot 25 missiles in June 2025, along with a $250 million contract from Japan's Mitsubishi Electric Corporation for ESSM Block 2 production, and a $1 billion contract for up to 55 Standard Missile-3 missiles [3][8] Group 2: Industry Context - Other U.S.-based defense contractors like Northrop Grumman and Lockheed Martin are also benefiting from increased contract flows as nations modernize their defense systems [4] - Lockheed Martin was awarded a $250 million contract for the F-35 logistics information system and selected for the TPY-4 radar system by Sweden [5] - Northrop Grumman secured a $267.2 million contract for MQ-4C Triton unmanned air systems and a $481.3 million contract for software updates to the Integrated Air and Missile Defense Battle Command System [6] Group 3: Stock Performance - RTX shares have increased by 45.3% over the past year, outperforming the industry growth of 19% [7][8] - The company's shares are currently trading at a forward 12-month Price/Earnings ratio of 22.95X, which is lower than the industry average of 26.70X [9]