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How Investors May Respond To RTX (RTX) Winning Major F135 Engine and Patriot Defense Contracts

Simply Wall St · 5d ago
  • In recent weeks, RTX has secured several large government deals, including multi-year F135 engine production and sustainment contracts worth a combined US$4.40 billion and a US$438 million U.S. airspace radar modernization award, while its Patriot system won a US$1.70 billion order from Spain.
  • These contract wins coincided with heightened geopolitical tension following the U.S.-led intervention in Venezuela, which has refocused attention on defense capabilities such as F-35 engines and integrated air-and-missile defense systems, areas where RTX is a key supplier.
  • We’ll now explore how the new F135 engine contracts might reshape RTX’s investment narrative and future risk‑reward profile for investors.

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RTX Investment Narrative Recap

To hold RTX, you need to believe in the resilience of its mix of defense, aerospace and aftermarket businesses, and its ability to manage tariff, cost and budget headwinds. The latest F135, Patriot and radar awards underline demand visibility, but the key near term catalyst remains the upcoming earnings report, while concentration in government defense spending is still the dominant risk. Recent geopolitical events appear more sentiment driven than fundamentally transformative for the business near term.

Among the recent announcements, the twin F135 engine awards, totaling US$4.40 billion across production and sustainment, look most relevant. They reinforce RTX’s role on the F 35 program at a time when defense spending is in the spotlight, and they may shape how investors weigh contract backed revenue against ongoing concerns about jet engine reliability, aftermarket costs and RTX’s high fixed cost base.

Yet investors should also be aware that RTX’s reliance on large government hardware programs leaves it exposed if budgets are reprioritized away from...

Read the full narrative on RTX (it's free!)

RTX's narrative projects $97.7 billion revenue and $8.9 billion earnings by 2028.

Uncover how RTX's forecasts yield a $194.65 fair value, a 3% upside to its current price.

Exploring Other Perspectives

RTX 1-Year Stock Price Chart
RTX 1-Year Stock Price Chart

Seven members of the Simply Wall St Community place RTX’s fair value between US$131.81 and US$194.65, with views spread across that entire band. Set those varied opinions against RTX’s dependence on government defense contracts, and you can see why it pays to compare several viewpoints before deciding how the recent contract wins might affect the company’s performance.

Explore 7 other fair value estimates on RTX - why the stock might be worth 30% less than the current price!

Build Your Own RTX Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your RTX research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
  • Our free RTX research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate RTX's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.