Raytheon Secures Five Key Agreements with U.S. Department of War
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy RTX?
Source: Benzinga
- Production Capacity Boost: Raytheon's five agreements with the U.S. Department of War will increase annual output targets to over 1,000 Tomahawk missiles, 1,900 AMRAAMs, and 500 SM-6 missiles, significantly enhancing defense capabilities for the U.S. and its allies.
- Expansion Investment: The company's investment in expanding facilities in Arizona, Alabama, and Massachusetts will accelerate production, with capacity expected to multiply by up to four times to meet rising global demand, ensuring Raytheon's leadership in the defense market.
- Transformative Collaboration: RTX CEO Chris Calio stated that these agreements redefine how government and industry can partner to expedite the delivery of critical technologies, directly responding to the administration's Acquisition Transformation Strategy to enhance defense technology delivery speed.
- Market Reaction: Despite RTX shares falling 3.46% to $196.46 at the time of the announcement, the stock is nearing its 52-week high of $205.36, indicating market confidence in the company's long-term growth potential.
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Analyst Views on RTX
Wall Street analysts forecast RTX stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for RTX is 195.77 USD with a low forecast of 168.00 USD and a high forecast of 215.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
9 Buy
5 Hold
0 Sell
Moderate Buy
Current: 195.970
Low
168.00
Averages
195.77
High
215.00
Current: 195.970
Low
168.00
Averages
195.77
High
215.00
About RTX
RTX Corporation is an aerospace and defense company, which provides advanced systems and services for commercial, military, and government customers worldwide. The Company operates through three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. Collins Aerospace segment provides technologically advanced aerospace and defense products and aftermarket service solutions for civil and military aircraft manufacturers, commercial airlines, and regional, business and general aviation, as well as for defense and commercial space operations. The Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers. The Raytheon segment provides defensive and offensive threat detection, tracking and mitigation capabilities for the United States and foreign government and commercial customers. The Raytheon designs, develops, and provides advanced capabilities in integrated air and missile defense, smart weapons, missiles and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
RTX Corporation Rated Among Top Defense Stocks by Analysts
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- Significant Contract Signed: RTX has secured a seven-year agreement with the Department of Defense to significantly increase the production and delivery of Tomahawk and AMRAAM missiles, addressing the rising global demand for precision munitions and further solidifying its market position.
- Production Capacity Enhancement: The annual production of Tomahawk missiles is set to rise from approximately 60 to over 1,000 units, while AMRAAM missile production capacity is planned to expand to at least 1,900 units, significantly boosting the company's ability to meet market demand.
- Strong Financial Performance: RTX reported a 12% year-over-year increase in total sales for Q4 FY2025, reaching $24.2 billion, with adjusted EPS of $1.55, exceeding estimates by 8 cents, demonstrating robust demand in the aerospace engine and maintenance service sectors.
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- Dividend History: RTX has paid cash dividends annually since 1936, indicating a stable financial performance amid economic fluctuations, which enhances investor confidence in the company's reliability.
- Company Scale and Strength: With over 180,000 global employees and sales exceeding $88 billion in 2025, RTX demonstrates its industry-leading position in aviation and defense, further solidifying its competitive edge in the market.
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- Historical Dividend Record: RTX has paid cash dividends annually since 1936, demonstrating the company's stable financial performance and dedication to shareholders even amid economic fluctuations.
- Company Scale and Strength: With over 180,000 global employees and sales exceeding $88 billion in 2025, RTX showcases its industry-leading position and technological innovation capabilities in aviation and defense sectors.
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- Price Target Increase: Citigroup raised RTX Corporation's stock price target from $227 to $238 while maintaining a Buy rating, indicating over a 21% upside from Thursday's close, reflecting analysts' confidence in the company's future performance.
- Significant Contract Signed: RTX has secured a seven-year agreement with the Department of Defense to significantly increase the production and delivery of Tomahawk and AMRAAM missiles, addressing the rising global demand for precision munitions and further solidifying its market position.
- Production Capacity Enhancement: The annual production of Tomahawk missiles is set to rise from approximately 60 to over 1,000 units, while AMRAAM missile production capacity is planned to expand to at least 1,900 units, significantly boosting the company's ability to meet market demand.
- Strong Financial Performance: RTX reported a 12% year-over-year increase in total sales for Q4 FY2025, reaching $24.2 billion, with adjusted EPS of $1.55, exceeding estimates by 8 cents, demonstrating robust demand in the aerospace engine and maintenance service sectors.
See More
RTX Declares $0.68 Dividend Per Share
- Dividend Announcement: RTX's board declared a dividend of $0.68 per share, payable on March 19, 2026, to shareholders of record as of February 20, 2026, reflecting the company's robust cash flow and profitability.
- Dividend History: RTX has paid cash dividends annually since 1936, indicating a stable financial performance amid economic fluctuations, which enhances investor confidence in the company's reliability.
- Company Scale and Strength: With over 180,000 global employees and sales exceeding $88 billion in 2025, RTX demonstrates its industry-leading position in aviation and defense, further solidifying its competitive edge in the market.
- Cautionary Forward-Looking Statements: While the company has a history of consistent dividends, future payments may vary significantly due to various risks and uncertainties, prompting investors to carefully assess associated risks.
See More
RTX Declares $0.68 Cash Dividend Per Share
- Dividend Announcement: RTX's board declared a cash dividend of $0.68 per share, payable on March 19, 2026, to shareholders of record as of February 20, 2026, reflecting the company's ongoing commitment to shareholder returns.
- Historical Dividend Record: RTX has paid cash dividends annually since 1936, demonstrating the company's stable financial performance and dedication to shareholders even amid economic fluctuations.
- Company Scale and Strength: With over 180,000 global employees and sales exceeding $88 billion in 2025, RTX showcases its industry-leading position and technological innovation capabilities in aviation and defense sectors.
- Forward-Looking Statement Risks: While the company has a history of consistent dividends, future dividend timing, amounts, and payments may vary significantly due to various risks and uncertainties, necessitating careful risk assessment by investors.
See More
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- Historic Milestone: The Dow Jones Industrial Average surpassed 50,000 for the first time in 2026, marking a significant achievement since its inception in 1896, reflecting sustained investor confidence amid economic fluctuations.
- Tech Stock Influence: This milestone was largely driven by strong performances from technology stocks, particularly Nvidia's replacement of Intel, highlighting the market's heightened focus and investment enthusiasm in the artificial intelligence sector.
- Market Rebound: Following a downturn in 2022, the Dow rebounded nearly 13% in 2023, with this breakthrough occurring against the backdrop of the index climbing over 1,100 points, demonstrating a robust market recovery.
- Changing Economic Landscape: Despite concerns over Trump's tariff policies and the impact of AI spending, the market has shown resilience, indicating investor optimism regarding future economic growth.
See More
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- Election Outlook: Japan is heading to the polls on February 8, with markets pricing in a 99% chance that Prime Minister Sanae Takaichi will remain in power, indicating strong expectations for policy continuity.
- Policy Impact Expectations: The market anticipates that Takaichi will continue aggressive fiscal stimulus and adopt a slower approach to interest rate hikes from the Bank of Japan, which will support economic growth and bolster market confidence.
- Yen Performance Analysis: Ahead of the election, the yen has been trading heavily, with USD/JPY hovering near the 157 level, reflecting market uncertainty about future policies and strong confidence in Takaichi's re-election.
- Governing Party Dynamics: The market shows a 99% support rate for the ruling Liberal Democratic Party (LDP) while the Japan Innovation Party (JIP) stands at only 22%, suggesting that the LDP may govern without its coalition partner, providing Takaichi with a “clear runway” to implement more hawkish policies.
See More
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- Potential for Tariff Refunds: Should the Supreme Court rule that Trump's International Emergency Economic Powers Act (IEEPA) tariffs are illegal, U.S. companies could receive billions in tariff refunds and insurance payouts, significantly improving their cash flow and financial health.
- Surge in Customs Bonds: As tariffs have risen from 10% to over 25%, importers are now facing customs bond amounts ranging from the regulatory minimum of $50,000 to $450 million, with some clients experiencing increases of up to 550%, putting pressure on their liquidity positions.
- Increased Insurer Profits: Insurers are benefiting from higher premium collections due to the rising customs bond amounts, with the number of insufficiency notices issued to importers quadrupling since 2017, highlighting the volatility and complexity of the current market environment.
- Future Uncertainty: If the Supreme Court rules the IEEPA tariffs illegal, while this may pose revenue challenges for insurers, the potential for freer trade and reduced uncertainty could yield positive economic outcomes, although the refund process may take time.
See More
